- Visa responds to the growing demand for innovative, blockchain-based solutions.
Visa has announced the forthcoming launch of its innovative platform, the Visa Tokenised Asset Platform (VTAP), designed to empower banks in the issuance of fiat-backed tokens, including stablecoins and tokenised deposits.
The initiative is a testament to the growing interest among financial institutions and businesses in leveraging blockchain technology and cryptocurrencies to enhance their operational efficiencies.
VTAP will enable banks to “mint, burn, and transfer” tokens, providing a comprehensive framework for managing digital assets. Although still in its testing phase, Visa aims to operationalise this platform next year, thereby positioning itself at the forefront of the evolving digital payments landscape.
Central to this development is the rising popularity of stablecoins—cryptocurrencies typically pegged to fiat currencies like the US dollar. These tokens offer a viable alternative for conducting transactions and serve as a stabilising refuge amidst the volatility associated with more traditional cryptocurrencies such as Bitcoin and Ether.
Digital payments
Spanish banking institution BBVA has been among the early adopters, having conducted trials of the platform throughout the year. They anticipate launching a pilot programme for select customers utilising the Ethereum blockchain in the coming year, showcasing tangible applications of this groundbreaking technology.
Vanessa Colella, Visa’s global head of innovation and digital partnerships, said the company’s legacy in digital payments, stating, “Visa has been at the forefront of digital payments for nearly sixty years, and with the introduction of VTAP, we are once again setting the pace for the industry.”
The sentiment reflects Visa’s commitment to continually innovating within the financial sector, as the demand for solutions that incorporate blockchain functionalities escalates.
The broader payments ecosystem has witnessed significant entries into the realm of stablecoins, with PayPal’s PYUSD and Stripe Inc.’s integration of stablecoin acceptance for merchants further illustrating the trend.
Colella further noted Visa’s intent to use its expertise in tokenisation to facilitate the integration of blockchain technologies into banks’ operations, aligning with the industry’s trajectory towards modernisation.