Visa Launches Tokenized Asset Platform for Banks to Explore Blockchain Solutions

The Visa Tokenised Asset Platform (VTAP) allows participating financial institutions to mint, burn, and transfer fiat-backed tokens, such as tokenized deposits and stablecoins, while also exploring various use cases, reports Finextra. Currently available in a testing phase, Visa plans to support live programs next year when the participating banks are ready to launch for end customers.

This platform is designed to enable banks to utilize their tokens within smart contracts, adding programmability. For instance, Visa suggests that a bank could automate complex credit lines through smart contracts, using fiat-backed tokens to release payments once terms are met. Visa also highlights the platform’s focus on blockchain interoperability. With a single API connection to VTAP, banks will be able to support multiple use cases and interact with partners and clients on both permissioned and public blockchains in the future.

Vanessa Colella, Visa's Global Head of Innovation and Digital Partnerships, says: “We are excited to apply our expertise in tokenization to assist banks in integrating blockchain technologies into their operations.” Spanish bank BBVA has been using VTAP's sandbox to test the issuance, transfer, and redemption of bank tokens on a testnet blockchain, as well as how these tokens interact with smart contracts. BBVA aims to launch an initial live pilot with select customers in 2025 on the public Ethereum blockchain.

Francisco Maroto, BBVA's Head of Blockchain and Digital Assets, comments: “This collaboration is a major step in our exploration of blockchain's potential and will ultimately help us expand our banking services and introduce new financial solutions to the market.”