Contents
Visa Introduces Visa Tokenized Asset Platform for Banks to Issue Fiat-Backed Tokens
Visa Unveils VTAP for Blockchain Tokenization
Facilitating Banks to Experiment with Fiat-Backed Tokens
Visa has launched the Visa Tokenized Asset Platform (VTAP) to aid financial institutions in issuing fiat-backed tokens on blockchain networks. This initiative allows banks to create and test their own fiat-backed tokens within a VTAP sandbox environment. Utilizing smart contracts technology, VTAP enables banks to issue and transfer fiat-backed tokens across blockchain networks, marking a new milestone in digital payments innovation.
VTAP Testing with BBVA
Spanish Bank Pioneering VTAP Sandbox Functionalities
The Spanish bank BBVA has been actively testing VTAP sandbox features, including token issuance, transfer, and redemption on a testnet blockchain. BBVA is also exploring interactions with smart contracts to enhance the functionality of the tokens. The bank plans to conduct an initial live pilot with selected customers on the public Ethereum blockchain in the coming year, leveraging the interoperability and ease of integration offered by VTAP.
Enabling Interoperability Across Blockchains
Visa’s Vision for Cross-Chain Exchange of Tokenized Assets
Visa aims to promote interoperability among different blockchain networks for banks utilizing the VTAP platform. With an API connection to VTAP, banks can facilitate a variety of use cases and engage with partners and clients on both permissioned and public blockchains. This commitment demonstrates Visa’s dedication to enabling secure cross-chain exchanges of tokenized real-world assets using fiat-backed tokens.
Blockchain Technology in Cross-Border Payments
Advantages of Blockchain for International Transactions
In a recent discussion with industry experts, the role of blockchain technology in cross-border payments was highlighted. Blockchain solutions and stablecoins have gained traction in the realm of cross-border payments, offering benefits such as disintermediation to streamline transactions and reduce costs. This advancement in technology is reshaping the landscape of international payments, providing a more efficient and cost-effective alternative to traditional banking systems.