Key Takeaways
- Visa’s VTAP bridges conventional banking and blockchain by tokenized fiat currencies
- BBVA amongst first banks to check Visa’s fiat-backed token platform on Ethereum
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Visa has launched the Visa Tokenized Asset Platform (VTAP), enabling banks to subject and handle fiat-backed tokens on blockchain networks. The platform, obtainable by Visa’s Developer Platform, will run reside pilots on the general public Ethereum blockchain in 2025.
VTAP offers instruments for minting, burning, and transferring fiat-backed tokens. These tokens, issued by monetary establishments, might be backed by fiat currencies, guaranteeing their stability.
Visa’s answer is designed to combine simply with banks’ current infrastructure, offering a safe API-based platform for issuing and managing these digital property.
“We’re excited to leverage our expertise with tokenization to assist banks combine blockchain applied sciences into their operations.” stated Vanessa Colella, International Head of Innovation and Digital Partnerships, Visa.
The platform permits for programmability, giving banks the flexibility to handle complicated transactions like traces of credit score or tokenized property, doubtlessly bettering workflow effectivity and lowering guide oversight.
Initially, VTAP will function on the Ethereum blockchain, offering banks with a safe testing atmosphere. Visa plans to increase its compatibility primarily based on demand, together with an built-in custody answer to handle non-public keys and wallets with out requiring extra infrastructure.
BBVA is already testing VTAP’s functionalities, together with token issuance and sensible contract utilization. The financial institution is predicted to run a reside pilot utilizing VTAP on the general public Ethereum blockchain in 2025.
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