Visa partners with BBVA to issue fiat-backed tokens on blockchain network, plans initial trials by 2025
On Thursday, Visa Inc. (NYSE:V) announced the new Visa Tokenized Asset Platform (VTAP). It is designed to enable financial institutions to issue and manage fiat-backed tokens on blockchain networks, bridging existing fiat and blockchain technologies.
BBVA has been testing core VTAP functionality this year, including the issuance, transfer, and redemption of bank tokens on the testnet blockchain. They aim to launch an initial pilot with selected customers on the public Ethereum blockchain in 2025.
“Visa has been at the forefront of digital payments for nearly 60 years, and with the introduction of VTAP, we are once again setting the pace for the industry,” said Vanessa, Global Head of Innovation and Digital Partnerships at Visa. Corella said.
Visa’s VTAP allows banks to safely and efficiently bring fiat currency onto blockchain networks.
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Easily integrated with minimal technical setup via accessible APIs, banks can mint and transfer fiat-backed tokens.
VTAP supports programmability, allowing banks to automate workflows and transactions using smart contracts.
Furthermore, it facilitates interoperability between different blockchains and facilitates secure cross-chain exchange of tokenized real-world assets.
Francisco Maroto, Head of Blockchain and Digital Assets at BBVA, said: “This partnership marks an important milestone in exploring the potential of blockchain technology and will ultimately expand our banking services and create new “We will be able to expand our market with financial solutions.”
Price Action: V stock is trading 0.26% lower at $276.69 at last check on Thursday.
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This article reads: Visa partners with BBVA to issue fiat-guaranteed tokens on blockchain network, with initial pilot planned by 2025
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