Visa has launched the Visa Tokenised Asset Platform (VTAP), a cutting-edge platform designed to help banks issue, manage, and experiment with fiat-backed tokens, such as stablecoins, on blockchain networks. The platform is currently available in a test environment, with plans to support live programmes by next year as banks prepare to launch with end customers.
VTAP enables financial institutions to mint, burn, and transfer tokenised deposits and stablecoins while exploring various use cases. By incorporating smart contracts, banks can automate complex processes like administering lines of credit, with fiat-backed tokens triggering payments when contractual terms are fulfilled.
Key Features of VTAP:
- Programmability: Banks can use smart contracts to create automated financial processes.
- Interoperability: VTAP supports interactions across multiple blockchains, both public and permissioned, via a single API connection.
- Real-World Testing: Spanish bank BBVA is already using the sandbox environment to test the issuance and management of a bank token on a testnet blockchain. BBVA plans a live pilot with select customers on the public Ethereum blockchain by 2025.
Vanessa Colella, Visa’s Global Head of Innovation and Digital Partnerships, said: “We’re excited to leverage our tokenization expertise to help banks integrate blockchain technologies into their operations.”
Francisco Maroto, BBVA’s Head of Blockchain and Digital Assets, stated that this collaboration marks a significant step in the bank’s journey to broaden banking services and expand with new financial solutions through blockchain technology.