BBVA, Visa Tease Ethereum Stablecoin Launch in 2025

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As a researcher who has been closely following the evolution of blockchain technology and its application in banking, I am thrilled to witness the upcoming launch of BBVA’s stablecoin on Ethereum (ETH) blockchain, powered by Visa’s Tokenized Asset Platform (VTAP).

The prominent Spanish banking group, Banco Bilbao Vizcaya Argentaria (BBVA), is set to launch a trial version of its own stablecoin, built upon the Ethereum blockchain. Visa’s innovative tokenization platform, VTAP, has been selected as the technical foundation for this groundbreaking project.

Visa-backed stablecoin by BBVA kicks off on Ethereum in 2025

It’s possible that BBVA could be the first global bank to launch its own stablecoin on Ethereum (ETH) blockchain. They plan to begin a trial run with selected customers using Visa’s tokenization platform as early as 2025, according to an official statement.

Thrilled to announce the Visa Tokenized Asset Platform, a fresh Visa offering designed to assist banks in transitioning to blockchain technology. We’re also pleased to share our collaboration with BBVA, as they leverage this platform to launch their inaugural stablecoin.

— Cuy Sheffield (@cuysheffield) October 3, 2024

BBVA’s team is currently testing VTAP in a simulated environment (Ethereum testnet) by exploring key features such as creating, moving, and retiring a digital token that acts like a bank token.

According to Cuy Sheffield, Visa’s Chief of Cryptocurrency, the project is crucial for the overall development of the stablecoin sector and banks’ shift to Web3 as a fresh technological foundation. In simpler terms, Sheffield highlights that this project plays a key role in the evolution of digital assets like stablecoins, and it’s significant for traditional banking institutions moving towards using Web3 technology as their base.

Thrilled to unveil the Visa Tokenized Asset Platform, a cutting-edge Visa solution designed to assist banks in transitioning to blockchain technology, and our collaboration with BBVA that will drive the launch of their initial stablecoin.

Previously reported by U.Today, it was announced that in September 2024, Visa formed a long-term alliance with the cryptocurrency hardware wallet manufacturer, Tangem.

Visa is facilitating Tangem’s exploration of creating a comprehensive banking app that bridges Web2 and Web3, offering both cryptocurrency and traditional fiat money transactions via the Tangem wallet.

Visa’s tokenized asset platform VTAP open for more opportunities

Francisco Maroto, Chief of Blockchain and Digital Currencies at BBVA, views the latest integration as a significant accelerator for the adoption of blockchain technology within banking and payment systems.

We’re thrilled to carry on leading the charge in developing tokenized solutions, hand-in-hand with Visa via its VTAP platform. This partnership signifies a substantial leap forward in our investigation of blockchain technology’s capabilities, paving the way for us to extend our banking services and introduce innovative financial solutions, thereby expanding our market reach.

Additionally, the Visa team noted that the recently developed VTAP (Visa Tokenization API Platform) can facilitate financial institutions in issuing and administering fiat-backed tokens across various blockchain networks.

Created by Visa’s in-house blockchain specialists, this platform aims to enhance programmability and cross-platform compatibility for the stablecoins being developed by banks, which are currently under development on public blockchains. To achieve these objectives, fiat-backed tokens will be integrated within smart contracts.

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2024-10-03 18:49