Visa to Launch Ethereum Tokenization Platform for Banks with BBVA as Pioneer
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Visa Unveils Tokenized Asset Platform
Visa is set to launch a global stablecoin and tokenized asset issuing platform, known as the Visa Tokenized Asset Platform (VTAP), aimed at revolutionizing traditional banking systems through blockchain technology. The platform will empower banks to mint and manage fiat-backed tokens, including stablecoins, enhancing the integration of fiat currencies within blockchain networks.
Live pilot programs for VTAP are expected to roll out on the public Ethereum blockchain in 2025. This initiative marks a critical shift in how traditional banks might interact with blockchain technology, offering tools for banks to seamlessly mint, burn, and transfer fiat-backed tokens. The platform’s core functionality focuses on bridging conventional banking with the digital asset landscape, using blockchain as a foundation for secure transactions.
VTAP provides an API-based, secure platform that integrates effortlessly with existing banking infrastructure. Banks will gain access to programmable transaction management, allowing them to handle complex processes like lines of credit and tokenized assets.
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The Ethereum blockchain has been chosen as the initial test environment, providing a familiar and secure space for banks to explore tokenized operations. Expansion to other blockchain networks will be considered based on market demand. Visa will also offer an integrated custody solution to manage private keys and wallets, simplifying adoption for banks without the need to build additional infrastructure.
BBVA Takes Lead in Stablecoin Development
Banco Bilbao Vizcaya Argentaria (BBVA), Spain's second-largest bank, emerges as an early adopter of VTAP, actively participating in Visa’s sandbox program. The bank is set to test its own stablecoin issuance, aiming for a prototype by 2025, with plans to launch the stablecoin by the end of that year.
BBVA’s stablecoin will initially support internal transactions but could expand to external clients as the technology evolves. Though yet to be finalized, the stablecoin is expected to be backed by either the euro or U.S. dollar, with BBVA favoring a euro-backed version due to its strong European market presence.
BBVA's involvement in digital assets dates back to 2014, providing cryptocurrency trading and custody services primarily for institutional clients in Switzerland. The bank’s foray into stablecoin issuance aligns with its strategy to use blockchain for enhancing digital transactions and optimizing financial systems.
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Exclusive control over minting, managing, and burning its stablecoin positions BBVA as a leading figure in Europe's digital asset sector. The bank also seeks to leverage its stablecoin initiative to increase financial access for underbanked populations, reflecting a broader vision for financial inclusion.
This article has been refined and enhanced by ChatGPT.
