Visa to Help Banks Issue Fiat-Backed Tokens on Ethereum

Payment industry giant Visa (V) has developed a new product to help banks issue fiat-backed tokens on the Ethereum network.

The Visa Tokenized Asset Platform (VTAP) will enable the development of tokens backed by smart contracts to help digitize and automate existing processes that will power the exchange of real-world assets (RWAs).

The statement said banks will use Visa’s new platform to purchase tokenized RWAs, such as commodities or bonds, with near real-time settlement using a token. One of the first financial institutions to use VTAP is planned to be Spanish bank BBVA.

Visa’s work in the blockchain and digital assets space began in March 2021 when the company began processing cryptocurrency payments denominated in USDC on Ethereum.

Earlier this month, Visa became a partner in Brazil’s central bank’s pilot project for a central bank digital currency (CBDC).