Visa to Launch Global Stablecoin Issuing Platform for Banks in 2025

Last updated:

October 3, 2024 11:44 EDT

Author

Hongji Feng

Author

Hongji Feng

About Author

Hongji is a crypto and tech reporter. He graduated from Northwestern University’s Medill School of Journalism with a Bachelor’s and a Master’s. He has previously interned at HTX (Huobi Global),…

Last updated:

October 3, 2024 11:44 EDT

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Visa is set to launch its global Visa Tokenized Asset Platform (VTAP) in 2025, allowing banks to issue fiat-backed tokens, including stablecoins, and manage digital transactions more efficiently.

Excited to introduce the Visa Tokenized Asset Platform, a new Visa product to help bring banks onchain, and our partnership with @bbva to power their first stablecoinhttps://t.co/MiZyYLlEmE

— Cuy Sheffield (@cuysheffield) October 3, 2024

The VTAP will allow banks to mint, burn, and transfer stablecoins and other fiat-backed tokens as part of their digital operations.

Visa has confirmed that the platform is currently in the testing phase, with live operations expected next year.

Visa Stablecoin to Be Tested on Ethereum in 2025

As part of its development, VTAP is currently undergoing tests and preparing for its first live pilot, expected to run on the Ethereum blockchain in 2025.

The pilot will involve select financial institutions, testing the issuance and transfer of tokens on a real-world scale.

Initially, VTAP will serve internal banking operations, but Visa plans to allow interoperability between institutions using the platform in the future.

VTAP seeks to enable banks to manage stablecoins and tokenized deposits within their own ecosystems, integrating blockchain technology into traditional financial systems for greater efficiency.

BBVA to Issue First Stablecoin Through Visa’s VTAP

One of the first institutions testing Visa’s VTAP is the Spanish bank BBVA, which has been collaborating with Visa throughout 2024.

According to a report by Fortune, BBVA is exploring how VTAP can be used to issue stablecoins and other fiat-backed tokens.

The bank, active in the digital asset space since 2014, has been offering cryptocurrency trading and custody services for institutional clients.

BBVA’s stablecoin, expected to be backed by either the euro or U.S. dollar, will initially be used for internal transactions. However, the bank envisions expanding its usage for external clients as the technology matures.

BBVA believes blockchain has the potential to transform digital transactions and improve the efficiency of financial systems.

“We realized that blockchain could transform the way we exchange value digitally, and consequently affect the way the financial system works,” said BBVA head of digital assets and blockchain Francisco Maroto.