Visa has launched a platform that allows global banks to issue stablecoins and other tokens.

Banking & Finance

Visa Inc., the American multinational payment card services corporation, has introduced the Visa Tokenized Asset Platform (VTAP) to assist banks in issuing stablecoins and other fiat-backed tokens on a global scale. VTAP is set to go live in 2025.


      – VTAP will allow banks to “create, burn, and transfer tokens,” giving financial institutions the infrastructure needed to leverage blockchain technology.

      - Banco Bilbao Vizcaya Argentaria (BBVA), a Spanish bank, has been testing the platform for a year and plans to pilot it on the Ethereum blockchain for selected customers in 2025.

     

Main Points:-   (i) PayPal Holdings Inc. has already launched its stablecoin, PayPal USD (PYUSD), while Stripe Inc. now enables merchants to accept stablecoins for online transactions.

      (ii) Stablecoins are a type of cryptocurrency that bridges traditional finance and digital currencies, facilitating transactions while safeguarding users from the significant price fluctuations seen with cryptocurrencies like Bitcoin and Ether.


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