Visa partners with BBVA to launch tokenized asset platform on Ethereum, live pilots expected in 2025

Visa, the global payments giant, has announced a major step forward in integrating blockchain technology with traditional banking.

With the launch of its Visa Tokenized Asset Platform (VTAP), set to pilot in 2025, Visa aims to enable financial institutions to mint, burn, and transfer fiat-backed tokens, such as stablecoins, on public blockchains like Ethereum.

This initiative reflects a growing trend among global financial institutions to explore blockchain’s potential while maintaining a connection to established banking systems.

In collaboration with BBVA, one of Spain’s largest banks, Visa’s new platform is designed to streamline digital asset transactions, making cross-border payments more efficient and cost-effective.

As blockchain continues to reshape financial services, Visa’s VTAP could represent a key turning point in how banks handle digital assets and transactions.

VTAP is engineered to integrate smoothly with traditional banking infrastructure through the use of APIs.

This allows banks to experiment with blockchain applications in a sandbox environment, providing a low-risk avenue for exploring the benefits of tokenization.

Visa’s platform leverages smart contracts to automate complex financial operations, such as credit management, reducing operational costs and enhancing efficiency.

Initially focused on fiat-backed tokens, the platform may soon support interoperability across multiple blockchain networks, although Visa has not yet revealed which other blockchains might be included.

BBVA-Visa partnership

BBVA, an early adopter of digital asset innovation, is leading the pilot phase of Visa’s Tokenized Asset Platform.

The Spanish bank has been testing the issuance, transfer, and redemption of tokenized assets on test blockchains since early 2024.

The pilot will move to Ethereum by 2025, signaling a full-scale effort to integrate blockchain into BBVA’s financial operations.

BBVA’s involvement highlights the bank’s commitment to staying at the forefront of blockchain innovation.

While no specific timeline for the public pilot has been disclosed, the trial has generated significant interest, particularly as more traditional banks consider integrating blockchain technology.

Visa’s caution on stablecoins

Even as Visa pushes forward with blockchain initiatives, it has raised concerns about the current state of stablecoin usage.

According to Visa’s head of crypto, Cuy Sheffield, a significant portion of stablecoin transactions is driven by automated bots rather than actual users.

This has sparked debate within the cryptocurrency industry, with some questioning Visa’s methodology.

Despite the concerns, industry experts argue that stablecoins are still in their early stages and could play a transformative role in digital payments.

Visa’s careful approach demonstrates the company’s desire to balance blockchain innovation with caution in the rapidly evolving cryptocurrency space.

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