Visa has launched the Visa Tokenized Asset Platform (VTAP), a system that helps banks create and manage stablecoins – digital tokens that are tied to real currencies.
This platform enables banks to securely create, destroy, and transfer tokens on blockchain networks, bridging traditional banking with blockchain technology.
VTAP simplifies the process for banks to issue tokens backed by real money, ensuring stability and trustworthiness. It also allows banks to utilize smart contracts—programs that automatically manage complex financial tasks. The platform integrates seamlessly with existing banking systems due to its user-friendly interface.
BBVA, a major Spanish bank, is among the first to pilot VTAP. In 2024, BBVA tested the platform and plans to conduct a real-world trial in 2025 using the Ethereum blockchain, focusing on token issuance and smart contract applications.
Looking ahead, Visa intends to enhance VTAP based on user feedback and may offer solutions for the secure storage and management of digital assets. VTAP is part of Visa’s initiative to enhance financial services through blockchain, facilitating interoperability among different blockchain networks.
In 2024, Visa took a significant step in the cryptocurrency space by partnering with Transak, aiming to streamline cryptocurrency withdrawals across more than 145 countries. \
This collaboration empowers users to efficiently convert their digital assets into local currency, thereby facilitating seamless spending at any location that accepts Visa.
This move not only improves user experience but also positions Visa as a leader in integrating traditional finance with digital currencies.
Read also: Visa is skeptical of stablecoins’ claims to take its market share, calling it noise.
Additionally, Visa joined forces with Tangem to launch an innovative payment card that functions as a hardware wallet. This product allows users to seamlessly pay with their cryptocurrency or stablecoin balances, bridging the gap between conventional banking systems and digital assets.
Moreover, Visa expanded its collaboration with Wirex to advance Web3 payments in the UK and Europe.
This development simplifies the process of transacting between cryptocurrencies and traditional currencies, leveraging Visa’s vast payment network to offer a more integrated financial experience for users.
