
VTAP: Visa Introduces Platform for Fiat-Backed Digital Tokens
Visa recently announced the launch of its Visa Tokenized Asset Platform (VTAP), a groundbreaking initiative leveraging blockchain technology.
Author: Sahil Thakur
Written On: Thu, 10 Oct 2024 05:27:42 GMT
Visa recently announced the launch of its Visa Tokenized Asset Platform (VTAP), a groundbreaking initiative that leverages blockchain technology to enable banks and financial institutions to issue and manage fiat-backed tokens such as stablecoins and Central Bank Digital Currencies (CBDCs). This platform is poised to revolutionize financial transactions by bridging traditional fiat currencies with blockchain networks, ensuring more efficient, secure, and real-time transfers.
Key highlights of VTAP:
- Easy Integration: VTAP allows banks to mint, burn, and transfer fiat-backed tokens with minimal effort through APIs, streamlining the process of putting fiat currencies on blockchain networks.
- Smart Contracts: The platform supports smart contracts, enabling banks to automate financial processes such as credit lines, where payments are released automatically when conditions are met.
VTAP’s programmability is expected to enhance the banking ecosystem. For example, banks can use fiat-backed tokens within smart contracts to digitize and automate workflows, such as tokenizing real-world assets like commodities or securities for real-time settlements.
Visa has collaborated with Spain’s BBVA to test VTAP’s functionalities. BBVA is experimenting with issuing and transferring bank tokens on test networks and utilizing smart contracts to automate processes such as loan management. Francisco Maroto, Head of Blockchain and Digital Assets at BBVA, stated, “This collaboration marks a significant milestone in our exploration of blockchain technology.”
Visa aims to establish VTAP as the go-to platform for tokenized assets, allowing financial institutions to connect seamlessly with multiple blockchain networks. By 2025, live pilots of VTAP are expected to transform global banking, bringing blockchain-based financial services into the mainstream.
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