Highlights:
- Visa announced that it has released its newly invented Visa Tokenized Asset platform (VTAP).
- VTAP offers banking firms diverse functionalities like fiat-based token transfers, minting, and burning.
- Visa also announced its readiness to partner with companies interested in exploring its latest innovation.
In an October 3 press release, leading digital payments giant Visa announced that it has released its unique Visa Tokenized Asset Platform (VTAP). Per the payment platform, its latest invention will allow banking firms to distribute and control fiat-backed tokens on several blockchain networks.
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Interestingly, financial settings interested in creating and experimenting with their distinct fiat-backed tokens in a VTAP sandbox can access the new release on the Visa Developer Platform. Boasting a global network with over 15,000 financial outlets, Visa is renowned for facilitating cross-border transactions via fiat currencies. Notedly, its transactions have cut across over 200 nations, underscoring a domineering global presence.
Speaking on the latest achievement, Vanessa Colella, the Global Head of Innovation and Digital Partnerships at Visa, remarked:
“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. We are excited to leverage our experience with tokenization to help banks integrate blockchain technologies into their operations.”
Another tradfi adoption play: @Visa announces their Visa Tokenized Asset Platform or VTAP.
VTAP is a cutting-edge solution developed by Visa’s in-house blockchain experts. The platform is a b2b solution designed to enable banks to bring fiat currencies onchain in a safe,… pic.twitter.com/XFauwlL340
— MartyParty (@martypartymusic) October 3, 2024
Visa Aims to Achieve Interoperability Across Several Blockchains via VTAP
According to the press release, VTAP will not only enable fiat-backed token transfers. It will also facilitate minting and burning actions. For context, fiat tokens in VTAP’s context cut across tokenized deposits and stablecoins, highlighting an all-encompassing network.
For now, these services are available only in test environments. However, plans to launch live functionalities next year are in place, which should align with banking institutions’ readiness timeline.
Having recognized the hindrances that might emerge from complex integration processes, Visa made the procedure seamless for interested banking firms. To enable VTAP’s entire functionalities, an Application Programming Interface (API) is crucial.
Noteworthily, VTAP will enable Smart Contract features to harmonize prevailing workflows. In addition, it will power future exchanges involving new types of real-world assets. In brief, the Smart Contract functionality will enable customers to purchase tokenized treasures or commodities via fiat-backed tokens. Aside from merely adopting fiat, the settlement process will involve on-chain near-real time.
Meanwhile, considering the broad ecosystem, Visa noted that it will ensure interoperability across several blockchains on its VTAP innovation. According to the payment giant, banks will offer multiple use cases through a single API connection to VTAP. With several use cases, Visa will create an avenue for banking firms to interact with partners and customers on distinct blockchains.
Opportunities for Future Partnerships
In the press release, Visa revealed that it is open to sealing new partnership deals with interested companies. Interestingly, the payment outlet disclosed its commitment to ensuring new partners expand beyond measures. While the door has remained open for intending collaborators, Banco Bilbao Vizcaya Argentaria (BBVA) has been testing the VTAP features.
Excited to introduce the Visa Tokenized Asset Platform, a new Visa product to help bring banks onchain, and our partnership with @bbva to power their first stablecoinhttps://t.co/MiZyYLlEmE
— Cuy Sheffield (@cuysheffield) October 3, 2024
Noteworthily, BBVA is considering launching an inaugural live pilot on the Ethereum blockchain in 2025. Hence, the rigorous compatibility assessment requirements. Notably, Francisco Maroto, the Head of Blockchain and Digital Assets at BBVA, spoke about the partnership, expressing his excitement.
Part of Francisco’s speech read thus:
“We are proud to continue spearheading the exploration of tokenized solutions with Visa through its VTAP platform. The collaboration marks a significant milestone in our exploration of the potential of blockchain technology. It will help broaden our banking services and expand the market with new financial solutions.”
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