Visa announces a new blockchain platform for banks to issue fiat-backed tokens and to manage them. BBVA will pilot this platform before 2025.
The global payment network Visa Has unveiled a blockchainThe platform will help banks integrate tokens backed by fiat, and bridge the gap between traditional banking technology and blockchain.
On Oct. 3, press releaseVisa has announced that the Visa Tokenized Asset Platform allows financial institutions mint, burn and transfer tokens which are backed up by fiat currency, including stablecoinsBBVA is a Spanish banking multinational that will be testing the technology with the general public Ethereum (ETH(Blockchain in 2025.
Visa’s VTAP integrates via APIs with banks’ existing infrastructure, allowing them to experiment in a sandbox. Its programability also allows financial institutions to automate various processes. “administering complex lines of credit using smart contracts and use fiat-backed tokens to release payments when payment terms are met.”
“We’re excited to leverage our experience with tokenization to help banks integrate blockchain technologies into their operations.”
Vanessa Colella Global Head of Innovation and Digital Partnerships, Visa
According to the press release, BBVA tested the platform from 2024 onwards, focusing its efforts on the issuance of tokens, their transfer and redemption, on the testnet blockchains. It is not clear when the Spanish company plans to pilot the platform. Visa’s platform was designed to allow interoperability with multiple blockchain networks. It is not clear which networks will be included.
Visa has raised concerns regarding stablecoin adoption
Visa unveiled a study The assumption that stabilitycoin transactions will reach the same volume as traditional payment networks is being challenged. Cuy Sheffield is Visa’s crypto head. He noted that the majority of stablecoin transactions are driven by bots, not genuine users.
Visa’s findings sparked a debate among industry players who questioned Visa’s method. Visa continues to be cautious when it comes to the adoption of stablecoins, but others believe that they are in their infancy and shouldn’t be discounted based on data currently available.
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Source: crypto.news
