Ethereum

Bank

when

Read

Visa has announced a new platform to help banks issue and manage fiat-backed tokens on blockchain networks, with BBVA set to pilot the platform by 2025.
Global payment network <a href="https://crypto.news/tag/visa/" target="_blank" rel="noopener noreferrer nofollow">Visa</a> has unveiled a <a href="https://crypto.news/tag/blockchain/" target="_blank" rel="noopener noreferrer nofollow">blockchain</a>-based platform to help financial institutions integrate fiat-backed tokens, aiming to bridge traditional banking and blockchain technology.
In an Oct. 3 <a href="http://investor.visa.com/news/news-details/2024/Visa-Introduces-the-Visa-Tokenized-Asset-Platform/default.aspx" target="_blank" rel="noopener noreferrer nofollow">press release</a>, Visa said the so-called Visa Tokenized Asset Platform will enable financial institutions to mint, burn, and transfer tokens backed by fiat currencies, such as <a href="https://crypto.news/tag/stablecoin/" target="_blank" rel="noopener noreferrer nofollow">stablecoins</a>, with BBVA, a Spanish multinational banking giant, set to pilot the technology on the public <a href="https://crypto.news/tag/ethereum/" target="_blank" rel="noopener noreferrer nofollow">Ethereum</a> (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noopener noreferrer nofollow">ETH</a>) blockchain in 2025.
Visa says the VTAP solution integrates with existing banking infrastructure via APIs, allowing banks to explore tokenization use cases within a sandbox environment. The platform’s programmability also enables financial institutions to automate processes, such as “administering complex lines of credit using smart contracts and use fiat-backed tokens to release payments when payment terms are met.”
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 “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
</blockquote>
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/visa-wraps-up-hong-kong-cbdc-trial-with-hsbc-and-hang-seng-bank/"> Visa wraps up Hong Kong CBDC trial with HSBC and Hang Seng Bank </a>
Per the press release, BBVA has been testing the platform throughout 2024, focusing on token issuance, transfer, and redemption on testnet blockchains. However, it is unclear when exactly the Spanish giant plans on piloting the platform. Visa says its platform is designed to support interoperability across multiple blockchain networks, though it is unclear what other networks are in line for support.
<h2 class="wp-block-heading" id="visa-raises-concerns-over-stablecoin-adoption">Visa raises concerns over stablecoin adoption</h2>
Earlier in May, Visa <a href="https://crypto.news/tens-of-billions-in-stablecoin-transactions-inorganic-visa-says/" target="_blank" rel="noopener noreferrer nofollow">unveiled a study</a> challenging the assumption that stablecoin transactions are approaching volumes seen in traditional payment networks. Cuy Sheffield, Visa’s head of crypto, noted that a significant portion of stablecoin activity is driven by automated bot transactions, rather than genuine usage.
The findings, however, sparked debate, with some industry participants questioning Visa’s methodology. While Visa remains cautious about stablecoin adoption, others argue that stablecoins are still in a nascent stage and should not be dismissed based on current data.
Read more: <a rel="noopener noreferrer nofollow" href="https://crypto.news/visa-vs-stablecoins-are-they-really-competing/"> Visa vs. stablecoins: are they really competing? </a>

Visa unveils blockchain platform for banks to handle fiat-backed tokens

Table of Contents

crypto.news

Other articles published on Oct 3, 2024

XRP Crashes Despite Bitwise ETF Filing Due to SEC Appeal in Ripple Case

Discovering Qubetics’ Innovative Solutions Amidst Gala’s Gaming Boom and Stellar’s Rising User Ad...

Ripple News Today: Bitwise XRP ETF Filing Amid Ripple SEC Lawsuit

Investor Earns Millions in Days with Meme Coin Investment

Bybit Brings Crypto-Native Investors Closer to Traditional Markets by Trading Global Indices with...

Designing Engaging Storylines: The Secret to Successful Online Slot Games

Join our free newsletter for daily crypto updates!