Visa launches VTAP platform, allowing commercial banks to issue fiat-backed tokens on the Ethereum network, opening up new opportunities for digital payments.

Global payments giant Visa officially launched the Visa Tokenized Asset Platform (VTAP) on October 3, a breakthrough B2B solution that enables commercial banks to issue fiat-backed tokens on the Ethereum network. VTAP is considered an important bridge, connecting the traditional financial system with the blockchain world, bringing many new opportunities to the digital payment industry.

VTAP was introduced by a number of Visa executives in recent days. Accordingly, a number of commercial banks have registered to participate in testing this platform. Visa affirmed that VTAP is a testament to the company's strong commitment to promoting innovation in the field of digital payments, through the integration of advanced technologies such as smart contracts.

The VTAP platform enables banks to issue, transfer, and destroy fiat-backed tokens via blockchain, including stablecoins, central bank digital currencies (CBDCs), and crypto deposits. VTAP is designed to be easily integrated into any bank’s system, with flexible programming capabilities and compatibility with multiple blockchains.

The launch of VTAP is part of Visa’s long-term strategy to explore and apply blockchain technology to improve operational efficiency. Visa is not the only company working on this area. Competitor Mastercard is also experimenting with projects related to CBDCs and similar blockchain solutions.

Currently, VTAP is still in the testing phase on the developer platform. However, several major banks are already planning to integrate the solution. Spain's BBVA has begun testing the core functions of VTAP, and expects to launch a live pilot with some customers by 2025.