Visa has introduced a new product to help banks create fiat-backed tokens on the Ethereum blockchain. This new platform is called the Visa Tokenized Asset Platform (VTAP), and it uses smart contracts to make this process easier.

VTAP will allow banks to create tokens that are backed by real-world currencies, like dollars or euros. These tokens can be used to digitize and automate financial processes, making it easier to trade assets like commodities or bonds. The platform will also enable faster settlement, meaning transactions can be completed almost instantly.

One of the first banks to use VTAP will be BBVA, a large Spanish bank. They plan to test the platform with a live pilot in 2025.

Visa has been involved in blockchain and digital assets for a while. In 2021, they started processing cryptocurrency payments using the stablecoin USDC on Ethereum. More recently, Visa partnered with Brazil’s central bank to help develop a Central Bank Digital Currency (CBDC).

Conclusion: Visa’s new platform, VTAP, is a significant step toward digitizing traditional financial processes using blockchain technology. By helping banks issue fiat-backed tokens on Ethereum, Visa is making it easier to trade real-world assets and speeding up transaction times. This move also strengthens Visa’s role in the growing world of digital currencies and blockchain technology.

Source: https://www.coindesk.com/business/2024/09/25/visa-to-help-banks-issue-fiat-backed-tokens-on-ethereum-via-new-tokenized-asset-platform/?

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