Visa recently launched the Visa Tokenized Asset Platform (VTAP) service that helps banks Token Issuance , marking Visa's entry into the real-world asset (RWA) tokenization space.
On October 3, 2024, Visa, the global leader in digital payments, is helping connect existing fiat currencies to blockchains through the Visa Tokenized Asset Platform (VTAP) , a new product designed to help financial institutions issue and manage fiat-backed Token on blockchain networks. The VTAP solution is now available on the Visa Developer Platform for participating financial institution partners to create and test their own Token in the VTAP sandbox .
VTAP is an innovative solution developed by Visa’s in-house blockchain experts. The platform is a B2B solution designed to help banks chain fiat currencies securely, seamlessly, and efficiently. Key benefits include:
- Easy Integration: VTAP provides a platform for banks to mint, destroy, and transfer fiat-backed Token , such as Tokenize deposits and stablecoins, and experiment with use cases. VTAP requires minimal technical integration, as participating banks can access the entire VTAP service through APIs designed to enhance existing financial infrastructure, making it more up-to-date and efficient.
- Programmability: VTAP is designed to allow banks to use fiat-backed Token in smart contracts. This could help digitize and automate existing processes and enable the exchange of new real-world assets in the future. For example, a bank could automate processes such as managing complex credit lines with smart contracts and use fiat-backed Token to release payments when payment terms are met. A bank could also allow its customers to use fiat-backed Token to purchase Tokenize goods or bonds with near-instant on- chain settlement.
- Interoperability: There is a growing ecosystem where Tokenize real assets are being issued on multiple public and permissioned blockchain networks. Visa’s vision is to enable interoperability between different blockchains for banks using the VTAP platform. With a single API connection to VTAP, in the future, banks can enable multiple use cases and interact with partners and customers on both permissioned and public blockchains. To support the widespread adoption of the Tokenize asset ecosystem, Visa is committed to enabling the safe and secure exchange of Tokenize real assets across multiple chain using fiat-backed Token .
BBVA has been working on the VTAP sandbox for the past year and has been testing the sandbox’s core functionality, including the issuance, transfer, and redemption of a bank Token on a blockchain testnet, as well as the Token ’s interaction with smart contracts. They aim to launch a VTAP test version for select customers in 2025 on the Ethereum blockchain .
“We are proud to continue to pioneer the exploration of Tokenize solutions with Visa through their VTAP platform,” Chia Francisco Maroto, Head of Blockchain and Digital Assets at BBVA. “This collaboration marks an important milestone in exploring the potential of blockchain technology and will help us expand our banking services and markets with new financial solutions.”
