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Visa Introduces Platform to Support Stablecoins and Tokenized Banking Deposits

Wed Jan 15 2025

Visa’s new tokenization platform could significantly advance the integration of digital assets in traditional banking. By offering tools for tokenized asset issuance and management, Visa aims to keep pace with innovations in the financial sector, ensuring banks can explore the benefits of blockchain technology.

Visa Introduces VTAP: A Bridge Between Traditional Finance and Blockchain

Visa has unveiled the Visa Tokenized Asset Platform (VTAP), a cutting-edge solution designed to help banks seamlessly integrate blockchain technology into their systems. VTAP allows financial institutions to issue fiat-backed tokens, including stablecoins and tokenized deposits, creating a new connection between traditional banking and blockchain innovations.

Through VTAP, banks can mint, burn, and transfer tokens, enabling them to explore use cases such as real-time settlement for tokenized assets. The platform also leverages smart contracts to automate complex financial processes, like managing credit lines, and supports interoperability across both public and private blockchains.

Visa emphasizes minimizing technical barriers for adoption, offering financial institutions API access to integrate blockchain capabilities quickly and securely. With VTAP, banks can digitize traditional workflows while maintaining the security and efficiency required in the modern digital economy.

BBVA is among the first banks to test VTAP in a controlled sandbox environment, with plans to pilot live transactions on the Ethereum blockchain by 2025. This partnership reflects Visa’s commitment to enabling financial institutions to adapt to the rise of blockchain-based payment systems.

This move aligns Visa with competitors like MasterCard, which recently launched its Multi-Token Network (MTN) in the UK to tokenize bank deposits. Visa has also expanded its crypto offerings, enabling direct transfers from cryptocurrency wallets to Visa cards in over 145 countries.

By rolling out VTAP, Visa is positioning itself at the forefront of the payments industry’s evolution, creating a secure and reliable digital infrastructure that bridges the gap between traditional finance and blockchain-based solutions.

TL;DR: Visa’s VTAP platform helps banks adopt blockchain tech by issuing fiat-backed tokens, supporting interoperability, and offering smart contract automation. Early adopters like BBVA are piloting Ethereum-based transactions, showcasing Visa’s efforts to lead the transformation of the payments industry.