Visa has introduced the Visa Tokenized Asset Platform (VTAP), enabling financial institutions to issue fiat-backed tokens and integrate blockchain technology into their operations. The platform supports seamless integration, programmability, and interoperability across blockchain networks, with live programs expected by 2025.
3 October 2024 – Visa, a global leader in digital payments, has announced the launch of its Visa Tokenized Asset Platform (VTAP), a groundbreaking solution designed to bridge fiat currencies with blockchain networks. The new platform allows financial institutions to issue and manage fiat-backed tokens, facilitating the seamless integration of traditional finance into blockchain ecosystems. This innovative product is available through the Visa Developer Platform, enabling banks to experiment with creating fiat-backed tokens in a secure sandbox environment.
With over 15,000 financial institution partners globally, Visa is leveraging its expertise in digital payments to help banks adopt blockchain technologies. By incorporating smart contracts and tokenization, VTAP enables banks to mint, burn, and transfer fiat-backed tokens such as stablecoins, positioning them to navigate the growing digital finance landscape.
“Visa has been a pioneer in digital payments for nearly sixty years, and the launch of VTAP reinforces our leadership in shaping the future of finance,” said Vanessa Colella, Global Head of Innovation and Digital Partnerships at Visa. “We are excited to bring our tokenization experience to the forefront, helping banks integrate blockchain technologies into their operations efficiently.”
VTAP’s Key Features and Benefits:
- Seamless Integration: VTAP provides an easy-to-use platform for banks to issue and manage fiat-backed tokens with minimal technical integration. The service is currently available for testing, with plans for live implementation by 2025. Banks can access VTAP services through APIs designed to enhance their existing financial infrastructure.
- Programmability: VTAP enables the use of fiat-backed tokens within smart contracts, allowing banks to automate complex workflows and facilitate transactions. For example, banks could streamline processes like credit administration and enable real-time payments using smart contracts and tokenized assets.
- Interoperability: Visa envisions a future where VTAP supports cross-chain exchanges, allowing financial institutions to interact seamlessly across permissioned and public blockchains. This flexibility empowers banks to adopt multiple use cases, ensuring the tokenized assets ecosystem remains interoperable and secure.
Visa is already partnering with financial institutions like BBVA, which has been testing VTAP functionalities, including the issuance and redemption of bank tokens on blockchain testnets. BBVA plans to pilot the solution with select customers by 2025 on the public Ethereum blockchain.
“Collaborating with Visa on VTAP marks an important milestone in our blockchain exploration,” said Francisco Maroto, Head of Blockchain and Digital Assets at BBVA. “This partnership will allow us to expand our services and offer innovative solutions that align with the future of finance.”
Visa remains committed to developing industry standards and partnering with fintechs to ensure the growth of secure, reliable, and compliant digital payment solutions in this new era of tokenized assets.
