Spanish multinational banking heavyweight Banco Bilbao Vizcaya Argentaria (BBVA) is ready to mint the pilot version of its stablecoin on the top of Ethereum (ETH) blockchain. Visa’s brand-new tokenization platform, VTAP, has been chosen as the technical basis for a game-changing product.
Visa-backed stablecoin by BBVA kicks off on Ethereum in 2025
BBVA might be the first global bank to issue its own stablecoin on Ethereum (ETH) blockchain. The inaugural stage of the live pilot with select customers is expected to start as soon as 2025 on Visa’s tokenization platform, an official statement says.
Representatives of BBVA are already experimenting with VTAP sandbox testing its core functionalities, including the issuance, transfer and redemption of a bank token on a testnet of Ethereum (ETH).
Cuy Sheffield, Visa’s Head of Crypto, stresses the paramount importance of the project for the entire stablecoin segment and banks’ transition to Web3 as a new technical basis:
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 stablecoin.
As covered by U.Today previously, in September 2024, Visa entered in a long-term partnership with hardware crypto wallet producer Tangem.
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Visa is powering the Tangem’s experiment focused on building the holistic Web2/Web3 banking application with crypto and fiat payment support through Tangem’s wallet.
Visa’s tokenized asset platform VTAP open for more opportunities
Francisco Maroto, Head of Blockchain and Digital Assets, BBVA, treats the new integration as a powerful boost for blockchain adoption in banking and payments:
We are proud to continue spearheading the exploration of tokenized solutions with Visa through its VTAP platform. This collaboration marks a significant milestone in our exploration of the potential of blockchain technology and will ultimately help enable us to broaden our banking services and expand the market with new financial solutions.
Also, the Visa team added that the new VTAP platform will be able to help financial institutions issue and manage fiat-backed tokens on blockchain networks.
Developed by Visa’s in-house blockchain experts, the platform will be focused on bringing programmability and cross-network accessibility to banks’ stablecoin solutions that are under development on public blockchains. To accomplish these goals, fiat-backed tokens will go live within smart contracts.
