This new platform from Visa will make it possible to create tokens that are backed by fiat currency and are driven by smart contracts.
Visa (V), a global leader in payments, has created a new solution that will assist financial institutions in issuing tokens backed by fiat currency on the Ethereum network.
According to an announcement that CoinDesk was able to capture, the Visa Tokenized Asset Platform (VTAP) will make it possible to create tokens that are backed by fiat currency and are driven by smart contracts. This will assist in the digitization and automation of current processes, which will ultimately be used to power the trade of real-world assets (RWAs).
Using a token, a bank would be able to utilize Visa’s new platform to acquire tokenized RWAs like as commodities or bonds with near-real-time settlement, according to the release. In 2025, the Spanish bank BBVA is planning to launch a live test program for VTAP, making it one of the first financial organizations to adopt the product.
It is widely known that Visa is actively working in the field of blockchain technology and digital assets. In March of 2021, the firm will begin processing cryptocurrency payments using the stablecoin USDC by using Ethereum.
At the beginning of this month, Visa became a partner of the central bank of Brazil in its pilot project towards a central bank digital currency (CBDC).
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