Visa has introduced a new blockchain-based platform to help banks create, manage, and transfer tokens backed by traditional currencies, like stablecoins. This technology, called the Visa Tokenized Asset Platform (VTAP), is set to be tested by the Spanish bank BBVA in 2025, using the Ethereum blockchain.
The platform will allow banks to explore blockchain use cases while automating processes like managing loans through smart contracts. Visa hopes this will make it easier for banks to connect traditional banking with blockchain technology, making transactions faster and more secure.
What potential advantages does the Visa Tokenized Asset Platform (VTAP) offer banks in managing traditional currencies and exploring blockchain use cases?
Banks can mint, burn, and transfer fiat-backed tokens with minimal technical effort through APIs. This simplifies the process of bringing fiat currencies on-chain and allows institutions to experiment with blockchain solutions in a sandbox environment.
I think Visa is establishing the way for a more accessible and well organized financial future.