The move comes in the context of more financial institutions and businesses exploring how blockchain technology could enhance their operations. The platform, named the Visa Tokenised Asset Platform (VTAP), is designed to allow banks to ‘mint, burn, and transfer’ these tokens. In the testing phase at the time of writing, VTAP is expected to launch next year, according to a statement from Visa.
Stablecoins, which are a type of cryptocurrency typically pegged to traditional assets such as the US dollar or other currencies, are often used in transactions or as a stable alternative to more volatile digital currencies such as bitcoin and ether.
Spanish bank BBVA has been testing VTAP throughout the year and plans to offer a pilot programme to select customers on the Ethereum blockchain sometime in 2024. Visa’s global head of innovation and digital partnerships stated that the company’s long-standing experience in digital payments positions it to lead in this area as well. She noted that VTAP is an example of how Visa aims to integrate blockchain technology with its established payment infrastructure.
According to Visa, fiat-backed tokens, including stablecoins, have seen increased adoption in the financial sector. PayPal has introduced its own stablecoin (PYUSD), and other companies such as Stripe now allow merchants to accept stablecoins as part of their online payment services.
Visa officials also reveals that the company plans to use its expertise in tokenization to assist banks in incorporating blockchain technology into their operations.
In other developments from Visa, the company launched a stablecoin analytics website via a partnership with Allium Labs in April 2024. Representatives from Visa's cryptocurrency wing shared insights in a blog post regarding the rationale behind publishing these analytics. The data presented highlighted that stablecoin volumes surpassed PayPal and were nearing Visa’s transaction levels.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now