Stablecoin

Fortune

USDC

<h2 id="key-points">Key Points</h2>
<ul>
 <li>BBVA is reportedly getting ready to launch its own Visa-backed stablecoin in 2025.</li>
 <li>The Spanish bank is in the sandbox phase of a new Visa program, helping firms launch tokenized assets.</li>
</ul>
<p>According to the latest reports, Banco Bilbao Vizcaya Argentaria (BBVA), is getting ready to launch its own stablecoin backed by Visa in 2025.</p>
<p>BBVA is a Spanish multinational financial services company based in Madrid and Bilbao, Spain. This is one of the largest financial institutions in the world, including in Portugal, Romania, Mexico, South America, Turkey, and Italy.</p>
<p>BBVA has been working in the digital asset space since 2014.</p>
<h2 id="bbva-s-digital-asset-to-go-live-in-2025">BBVA’s Digital Asset to Go Live in 2025</h2>
<p>In a new interview with Fortune, BBVA’s head of digital assets and blockchain Francisco Maroto, stated that the bank is currently in a sandbox phase of a new Visa program that supports firms to launch their own tokenized assets.</p>
<p>After the testing phase, BBVA plans to reach the prototype phase and go live with its digital asset in 2025.</p>
<p>Maroto hopes that this new project will benefit the bank from the continually developing trend of asset tokenization including:</p>
<ul>
 <li>Real estate</li>
 <li>Private credit funds</li>
</ul>
<p>He also highlighted how the blockchain transforms the way people exchange value digitally, and this affects the functionality of the entire financial system.</p>
<h2 id="why-bbva-chose-visa">Why BBVA Chose Visa</h2>
<p>Maroto also explained that BBVA preferred working with Visa rather than choosing an existing stablecoin option due to two main factors:</p>
<ul>
 <li>Visa’s established brand</li>
 <li>Regulatory compliance</li>
</ul>
<p>BBVA is currently one of the first financial institutions to experiment with the new product. The bank operates mainly in Europe which recently revealed new MiCA <a href="https://crypto.ro/en/news/usdc-gains-mica-compliance-how-this-affects-binance-user-accounts/" rel="noopener noreferrer nofollow">stablecoin regulations</a>.</p>
<p><strong>Key notes</strong> about the upcoming BBVA stablecoin:</p>
<ul>
 <li>BBVA will probably build the stablecoin around the Euro, considering its European presence.</li>
 <li>The stablecoin will reportedly be used for settlement on exchanges that offer tokenized assets.</li>
 <li>BBVA will handle the mint and burn mechanism that converts fiat into crypto ecosystems.</li>
</ul>
<p>Maroto also noted that the US is not on the bank’s short-term plan list. However, the Spanish bank currently offers custody and trading of Bitcoin, Ethereum, and USDC in Switzerland for private banking and institutional customers.</p>
<h2 id="about-visa-s-new-program-vtap">About Visa’s New Program – VTAP</h2>
<p>Visa’s new program is called the<a href="https://investor.visa.com/news/news-details/2024/Visa-Introduces-the-Visa-Tokenized-Asset-Platform/default.aspx" rel="noopener noreferrer nofollow" target="_blank"> Visa Tokenized Asset Platform.</a></p>
<p>The platform is a b2b solution that will allow banks to bring fiat currencies on-chain in a safe, seamless, and efficient manner, according to their own notes.</p>
<p><strong>VTAP benefits</strong> include the following:</p>
<ul>
 <li>Easy Integration – VTAP provides a platform for banks to mint, burn, and transfer fiat-backed tokens.</li>
 <li>Programmability – VTAP will enable banks to use their fiat-backed tokens within smart contracts, helping digitize and automate existing workflows.</li>
 <li>Interoperability – Visa’s vision will enable interoperability across multiple blockchains for banks that use its VTAP platform.</li>
</ul>
<p>Last week, Visa announced a new product that would allow financial institutions including banks to launch their own stablecoins – called by Visa “fiat-backed tokens.”</p>
<p>The use cases would vary, but the main idea would be for banks to choose the type of asset held as a reserve, which could vary from fiat to deposits.</p>
<p><a href="https://fortune.com/crypto/2024/10/03/bbva-plans-to-launch-stablecoin-in-2025-with-support-from-visa/" rel="noopener noreferrer nofollow" target="_blank">Fortune</a> noted that the tokens would work only within the bank’s own ecosystem, but the long-term plan would be to facilitate interoperability between institutions.</p>

BBVA To Launch a Stablecoin With Visa Program in 2025

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