Visa plans to launch a global Visa Tokenized Asset Platform (VTAP) in 2025, which will enable banks to issue tokens backed by fiat currencies, including stablecoins, and manage digital transactions more efficiently.
VTAP will enable banks to create, burn and transfer stablecoins and other fiat currency-based tokens as part of their digital operations. The company confirmed that the platform is currently in the testing phase, and is expected to launch next year.
Visa stablecoin testing on Ethereum in 2025.
As part of its development, VTAP is currently undergoing testing and preparing for its first live pilot program to be launched on the Ethereum blockchain in 2025. It will involve selected financial institutions, testing the issuance and transfer of tokens at real scale.
Initially, VTAP will handle internal banking operations, but Visa plans to enable interoperability between institutions using the platform in the future.
VTAP aims to enable banks to manage stablecoins and tokenized deposits within their own ecosystems, integrating blockchain technology with traditional financial systems to increase efficiency.
BBVA to issue first stablecoin through VTAP Visa
One of the first institutions testing Visa’s VTAP is Spanish bank BBVA, which has been working with Visa since 2024. According to a Fortune report, BBVA is exploring how VTAP can be used to issue stablecoins and other fiat currency-based tokens.
The bank, which has been active in the digital asset sector since 2014, offers cryptocurrency trading and deposit services to institutional clients.
BBVA’s stablecoin, which is to be based on the euro or US dollar, will initially be used for internal transactions. However, the bank expects to expand its use for external customers as the technology matures.
BBVA believes blockchain has the potential to transform digital transactions and improve the efficiency of financial systems.
“We have realized that blockchain technology has the potential to change the way we digitally exchange value, and in turn impact the performance of the financial system,” said Francisco Maroto, director of digital assets and blockchain technology at BBVA.