Visa introduces Ethereum tokenization platform for banks with BBVA as early adopter

Key takeaways

Visa's VTAP bridges traditional banking and blockchain through tokenized fiat currencies
BBVA among the first banks to test Visa's fiat-backed token platform on ethereum

Visa has launched the Visa Tokenized Asset Platform (VTAP), which allows banks to issue and manage fiat-backed tokens on blockchain networks. The platform, available through Visa Developer Platformwill conduct live pilots on the public ethereum blockchain in 2025.

VTAP provides tools to mint, burn, and transfer fiat-backed tokens. These tokens, issued by financial institutions, will be backed by fiat currencies, ensuring their stability.

Visa's solution is designed to easily integrate with banks' existing infrastructure, providing a secure API-based platform to issue and manage these digital assets.

“We are excited to leverage our experience with tokenization to help banks integrate blockchain technologies into their operations.” said Vanessa Colella, global head of digital innovation and partnerships at Visa.

The platform enables programmability, giving banks the ability to manage complex transactions such as lines of credit or tokenized assets, potentially improving workflow efficiency and reducing manual oversight.

Initially, VTAP will operate on the ethereum blockchain, providing banks with a secure testing environment. Visa plans to expand its support based on demand, including an integrated escrow solution to manage private keys and wallets without requiring additional infrastructure.

BBVA is already testing VTAP functionalities, including the issuance of tokens and the use of smart contracts. The bank is expected to run a live pilot using VTAP on the public ethereum blockchain in 2025.