Visa has unveiled a ground-breaking new offering intended to facilitate banks’ more seamless use of blockchain technology. Financial institutions can issue fiat-backed tokens on blockchain networks through the Visa Tokenized Asset Platform (VTAP), which acts as a link between conventional fiat currencies and blockchain-based assets.
Token Management for Financial Institutions: A Safe and Effective Approach
Stablecoins and tokenized deposits are examples of fiat-backed tokens that banks may safely generate, burn, and transfer thanks to VTAP. This platform is Visa’s most recent attempt to improve blockchain-powered digital payment solutions. VTAP, which is accessible via the Visa Developer Platform, allows banks to test fiat-backed tokens in a regulated sandbox setting.
Using Visa’s Worldwide Network to Increase Blockchain Utilization
Visa, which now provides services to more than 15,000 financial institutions in more than 200 countries, is now integrating blockchain technology with its knowledge of digital payments. With programmable capabilities that enable smart contracts and automated workflows for a range of financial activities, VTAP provides banks with the tools they need to incorporate blockchain technology into their current systems.
Cooperation Throughout Blockchain Networks
The compatibility of VTAP with both public and private blockchains is one of its main features. Through a single API connection, Visa’s technology streamlines interactions between banks and other blockchain ecosystems, hence expediting the management of tokenized assets. Visa highlights how crucial this interoperability is to the general adoption of tokenized assets.
BBVA, VTAP Testing in Sandbox with Upcoming Pilot Projects
One of the first financial firms to test the potential of VTAP is BBVA. Visa claims that in addition to creating, transferring, and redeeming tokens on a test blockchain, the bank has been working on a real pilot program on Ethereum that will begin in 2025. Through this pilot, the useful uses of fiat-backed tokens on open blockchain networks will be investigated in more detail.
