Visa Inc. is preparing to launch a new platform for banks to issue tokens backed by fiat currencies such as stablecoins and tokenized deposits. By data Bloomberg, the platform called the Visa Tokenized Asset Platform (VTAP) should be ready to launch in 2025.
Recently, financial institutions and enterprises have been actively exploring the possibilities of cryptocurrencies and blockchain technologies to improve their work. VTAP will be a tool for banks to “mint, burn and transfer” tokens. The platform is currently in the testing phase, but is expected to be fully launched next year. Stablecoins are cryptocurrencies that typically have a fixed value tied to an asset, such as the US dollar.
The Spanish bank BBVA has already been testing VTAP for a year and plans to implement a pilot project for a limited number of customers based on the Ethereum blockchain in 2025.
“Visa has been a leader in digital payments for nearly 60 years, and with the introduction of VTAP, we’re once again setting the pace for the industry”,” said Vanessa Colella, Global Head of Innovation and Digital Partnerships at Visa.
Stablecoins and other fiat-backed tokens are growing in popularity thanks to projects like PayPal Holdings Inc.’s PYUSD. Visa aims to help banks integrate blockchain technologies into their operations, drawing on their experience in the field of tokenization.
There is also growing interest in central bank digital currencies (CBDCs) around the world, a response to changing payment habits during the COVID-19 pandemic. The crisis accelerated the transition to contactless digital payments and e-commerce. As a result, more than 87 countries, representing 90% of global GDP, are currently exploring the possibility of implementing CBDCs.
In addition to this, on October 3 it became known that the international money transfer system SWIFT also plans to test real-time transactions of tokenized assets and digital currencies in 2025.
