Visa to Help Banks Issue Fiat-Backed Tokens on Ethereum Via New Tokenized Asset Platform

Election 2024 coverage presented by
Payments giant Visa (V) has developed a new product to help banks issue fiat-backed tokens on the Ethereum network.
Visa Tokenized Asset Platform (VTAP) will enable the development of fiat-backed tokens powered by smart contracts to help digitize and automate existing processes that will then power the exchange of real-world assets (RWAs), according to an announcement seen by CoinDesk.
A bank would use Visa’s new platform to purchase tokenized RWAs such as commodities or bonds with near-real-time settlement, using a token, the statement said. One of the first financial institutions to use VTAP will be Spanish bank BBVA, who expects to rollout a live pilot in 2025.
Visa’s work in blockchain and digital assets is well established, with the company processing cryptocurrency payments in stablecoin USDC on Ethereum in March 2021.
Earlier this month, Visa became a partner of Brazil’s central bank in its pilot project toward a central bank digital currency (CBDC).
The news was first reported by Blockworks.
Read More: U.S. Consumers Say Crypto Is Here to Stay, Stablecoins Maybe Not: Deutsche Bank
Edited by Aoyon Ashraf.

Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.
Jamie Crawley is a CoinDesk news reporter based in London.