According to a recent Press Release, Visa has introduced the Visa Tokenized Asset Platform (VTAP), a new solution aimed at bridging the gap between fiat currencies and blockchain networks. This platform, available through the Visa Developer Platform, allows financial institutions to issue and manage fiat-backed tokens. With VTAP, participating institutions can create and test their own tokens in a sandbox environment, signaling Visa’s continued push to integrate blockchain technology into traditional financial systems.

As a global leader in digital payments, Visa operates across more than 200 countries through a network of over 15,000 financial institutions. The company is now applying its expertise in smart contracts and other emerging technologies to help banks issue and transfer fiat-backed tokens on blockchain networks.

Vanessa Colella, Visa’s Global Head of Innovation and Digital Partnerships, commented on the launch, saying, “Visa has led the digital payments industry for nearly 60 years, and with VTAP, we are once again setting the pace.” She emphasized that Visa’s knowledge of tokenization would play a critical role in helping banks adopt blockchain technology.

VTAP, developed by Visa’s in-house blockchain team, offers a secure and efficient way for banks to integrate fiat currencies onto blockchain networks. The platform allows banks to mint, burn, and transfer fiat-backed tokens while experimenting with new use cases. The service is currently available in a test environment, with plans to support live programs by 2025, once participating banks are prepared to launch these services for end customers. Visa aims to enhance banks’ financial infrastructure through API integration, enabling fiat-backed tokens to be used in smart contracts, potentially automating processes like credit administration.

Visa is also looking to enable interoperability between various blockchains, allowing banks to interact with both permissioned and public blockchain networks through a single connection. This would support a growing ecosystem of tokenized real-world assets, facilitating secure cross-chain exchanges using fiat-backed tokens.

BBVA has been testing VTAP in its sandbox environment, exploring the issuance, transfer, and redemption of bank tokens on a test blockchain. The bank is preparing to launch a live pilot with select customers on the Ethereum blockchain in 2025. Francisco Maroto, Head of Blockchain and Digital Assets at BBVA, described the collaboration with Visa as a significant step in expanding their blockchain initiatives and offering new financial solutions to the market.

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