Visa to Launch Platform Enabling Banks to Issue Digital Tokens by 2025

Visa has introduced the Visa Tokenized Asset Platform (VTAP), a new initiative aimed at helping banks issue fiat-backed digital tokens on blockchain networks. The platform, currently available in a sandbox environment, is set to go live by 2025.

BBVA, one of the early adopters, plans to leverage VTAP to issue its own tokens on the Ethereum blockchain.

Visa's VTAP Platform

On October 3rd, Visa announced that VTAP is now accessible via its Developer Platform, allowing financial institutions to develop and test digital assets such as stablecoins and Central Bank Digital Currencies (CBDCs). VTAP offers an end-to-end infrastructure that facilitates the minting, transfer, and settlement of digital assets across both public and private blockchains.

The platform is part of Visa's broader strategy to integrate emerging technologies, including smart contracts, into the banking sector. Visa envisions VTAP playing a key role in helping its global network of more than 15,000 clients across 200+ countries offer secure blockchain-based services.

Visa highlighted that banks can use fiat-backed tokens on VTAP within smart contracts to automate workflows and facilitate the exchange of real-world assets.

BBVA's Pilot Program

BBVA has been testing VTAP's core features in a sandbox environment throughout this year. These tests include the issuance, transfer, and redemption of digital tokens on a testnet, along with integrating smart contract interactions. BBVA plans to conduct a live pilot of its token issuance on the Ethereum blockchain with select customers in 2025.

Francisco Maroto, BBVA's Head of Blockchain and Digital Assets, stated that exploring blockchain technology is crucial for expanding the bank’s services and introducing new financial solutions.