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Visa Launching Tokenized Asset Platform for Banks

Visa’s Tokenized Asset Platform will allow banks to issue fiat-backed tokens powered by smart contracts.
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Sep 25, 2024 • 1 min read

Visa is launching a platform on Ethereum to help banks issue fiat-backed tokens, part of its broader effort to bring traditional finance to blockchains.

What's the Scoop?

  • New Platform: Visa’s Tokenized Asset Platform (VTAP) will allow banks to issue fiat-backed tokens powered by smart contracts, enabling faster settlement and digitized transactions for real-world assets like bonds and commodities.
  • BBVA Pilot: Spanish bank BBVA is set to be among the first to use VTAP, with a live pilot scheduled for 2025.
  • Previous Blockchain Efforts: Visa has been involved in blockchain since at least 2021, when it started processing USDC stablecoin payments on Ethereum.
  • CBDC Involvement: Visa is also a partner in Brazil’s central bank’s pilot for a central bank digital currency (CBDC).

Bankless Take:

Visa’s push into blockchain and tokenized assets adds huge momentum to the broader trend of financial institutions entering the stablecoin space. With reports last week indicating neobank Revolut has plans to launch a stablecoin, Visa’s VTAP signals this interest may have reached a tipping point where traditional financial institutions see stablecoins not just as a crypto tool, but as a new way to digitize and automate real-world transactions. Further, this announcement also helps clarify Ethereum’s role amid recent uncertainty, showing that institutions globally are waking up to its role as the settlement layer for crypto.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

Published in Bankless

There’s a revolution in the world of money. Ethereum, Bitcoin, crypto, open finance, DeFi—a bankless revolution. And you want part of it.

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