Visa Launches Tokenization Platform for Institutions

Payments giant Visa has unveiled the Visa Tokenized Asset Platform, which will assist banks with fiat-backed token issuance and management.

The product is available on Visa’s developer platform for eligible institutional partners, and Banco Bilbao Vizcaya Argentaria, or BBVA, will be using VTAP to create its first stablecoin on Ethereum in 2025, according to Visa.

VTAP is designed to “enhance existing financial infrastructure,” automate workflow via smart contracts, “power the future exchange of new types of real-world assets,” and meet the interoperability demands of multiple blockchains.

“Visa has been at the forefront of digital payments for nearly sixty years, and with the introduction of VTAP, we are once again setting the pace for the industry, ” said Vanessa Colella, Visa’s global head of innovation and digital partnerships.

“This collaboration marks a significant milestone in our exploration of the potential of blockchain technology and will ultimately help enable us to broaden our banking services and expand the market with new financial solutions,” said Francisco Maroto, BBVA’s head of blockchain and digital assets.

Nick Martitsch, the head of market development at venture firm Paradigm, took to social media and said, “This move may also unlock the final piece of the remittance payment lifecycle that has been hindering adoption: direct merchant acceptance of stablecoins in their POS systems.”