Visa Helps BBVA Set Path for 2025 Stablecoin Launch Using VTAP

Visa has launched the Visa Tokenized Asset Platform (VTAP), a new initiative aimed at facilitating the issuance and experimentation of fiat-backed tokens by financial institutions. The platform is designed to assist banks in integrating blockchain technology to tokenize real-world assets such as real estate and debt securities.

Visa and Spanish BBVA Pioneer Tokenized Banking on Blockchain

In recent updates, Visa announced that Banco Bilbao Vizcaya Argentaria (BBVA), a major financial institution based in Spain, has started working within the VTAP sandbox. This development is part of BBVA’s strategic move to enhance its banking services through blockchain technology. 

The bank plans to conduct a pilot on the Ethereum blockchain by 2025, aiming to issue, transfer, and redeem bank tokens in a regulated and secure environment.

Additionally, the collaboration between Visa and BBVA exemplifies the potential of decentralized technology in transforming traditional banking operations. By tokenizing bank deposits and other assets, BBVA offers its customers an efficient way to handle financial transactions. 

This initiative also reflects the financial corporation’s commitment to setting global standards for the integration of blockchain in financial services. More so, it ensures a cohesive and interoperable approach across the industry.

VTAP Setting Global Standards in Blockchain Integration

Despite VTAP support for the tokenization of assets, this initiative will establish a framework that can govern the interactions between different financial entities. This effort is crucial for creating a uniform platform where both cash flows and asset trades can be managed seamlessly. 

Moreover, the platform allows financial institutions to provide their customers with direct access to on-chain capital markets, enhancing liquidity and investment opportunities.

In addition, Visa’s Head of Crypto, Cuy Sheffield, highlighted the platform’s role in introducing more cash forms for trading tokenized assets like real estate and debt securities. Sheffield also mentioned that central banks are increasingly exploring tokenization, observing its transformative impact on global finance.

Cuy Sheffield added,

“We think the next phase is the banks coming in, starting to experiment and creating their own products.” 

In its ongoing effort to embrace and enhance blockchain technology applications, Visa has also formed a partnership with Singapore’s dtcpay. This collaboration aims to broaden the firm’s crypto payments network, facilitating easier and secure cross-border transactions for users.

BBVA’s Roadmap to Stablecoin Launch and Implementation

Additionally, BBVA is set to broaden its footprint in digital assets as it gears up to introduce its own stablecoin through this Visa collaboration. In a comprehensive update on October 3, Francisco Maroto, BBVA’s head of digital assets and blockchain, detailed the bank’s current progress under VTAP.

Maroto revealed that BBVA is actively experimenting within Visa’s Tokenized Asset Platform sandbox, targeting a move to the prototype phase by 2025. The Spanish banking giant is exploring various backing options for its stablecoin, including deposits, money market funds, or major fiat currencies like the euro or U.S. dollar, with a focus on utilizing the stablecoin for settlements on exchanges.