Visa to Launch Global Stablecoin Issuing Platform for Banks in 2025

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Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

Visa is set to launch its global Visa Tokenized Asset Platform (VTAP) in 2025, allowing banks to issue fiat-backed tokens, including stablecoins, and manage digital transactions more efficiently.

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

The VTAP will allow banks to mint, burn, and transfer stablecoins and other fiat-backed tokens as part of their digital operations.

Visa has confirmed that the platform is currently in the testing phase, with live operations expected next year.

As part of its development, VTAP is currently undergoing tests and preparing for its first live pilot, expected to run on the Ethereum blockchain in 2025.

The pilot will involve select financial institutions, testing the issuance and transfer of tokens on a real-world scale.

Initially, VTAP will serve internal banking operations, but Visa plans to allow interoperability between institutions using the platform in the future.

VTAP seeks to enable banks to manage stablecoins and tokenized deposits within their own ecosystems, integrating blockchain technology into traditional financial systems for greater efficiency.

One of the first institutions testing Visa’s VTAP is the Spanish bank BBVA, which has been collaborating with Visa throughout 2024.

According to a report by Fortune, BBVA is exploring how VTAP can be used to issue stablecoins and other fiat-backed tokens.

The bank, active in the digital asset space since