Visa Tokenized Asset Platform (VTAP) is a new program that it has established to assist banks in issuing tokens backed by currency on blockchain networks.
The massive digital payment company declared on October 3 that VTAP is now available via its Developer Platform. Participating institutions can create and test digital assets such as Central Bank Digital Currencies (CBDCs) and stablecoins thanks to this.
Although the platform is now only accessible in a sandbox, Visa intends to open up live use by 2025.
VTAP
Visa described VTAP as a way to apply its knowledge of new technologies, including smart contracts, to help banks offer blockchain services. The company plans to expand the solution to its global network of more than 15,000 customers in over 200 countries.
VTAP is designed to provide Visa’s institutional customers with an end-to-end infrastructure to securely mint, transfer and settle digital asset transactions on public and private blockchains.
According to Visa, VTAP will enable banks to use fiat-backed tokens in smart contracts, which will help automate existing workflows and facilitate the exchange of new types of real-world assets.
BBVA’s pilot project
According to a press release, Banco Bilbao Vizcaya Argentaria (BBVA) is one of the first adopters of VTAP.
BBVA tested key features of the platform in sandbox mode this year. These tests include issuing, transferring and redeeming bank tokens on the testnet blockchain, as well as interacting with smart contracts.
The company plans to launch a live pilot on the Ethereum blockchain with select customers in 2025.
Francisco Maroto, head of BBVA’s Blockchain and Digital Assets Division, emphasized that exploring the potential of blockchain will help the bank expand its services and introduce new financial solutions.