What is Visa's Tokenized Asset Platform (VTAP), which was introduced recently?

VTAP allows banks to create and manage fiat-backed tokens on the blockchain. This platform speeds up transactions, increases security, and automates financial processes with smart contracts. A full launch is planned for 2025!

Let's take a detailed look at how the VTAP platform works and what it will do.

•It is a blockchain-based initiative that aims to help banks and financial institutions issue and manage fiat-backed tokens. These tokens represent real-world assets such as currencies, commodities, or securities, and enable secure and fast transactions on blockchain networks. VTAP allows banks to perform more secure and efficient transactions using these tokens and automates financial processes through smart contracts.

•The platform is currently being tested in a sandbox environment, and banks like BBVA are experimenting with the process of issuing, transferring, and returning tokenized fiat currencies. Visa plans to fully launch VTAP in 2025 and make it available for real-world use by banks.

•One of the key features of VTAP is that it enables interoperability between different blockchain networks, facilitating banks’ digital asset transactions with minimal technical integration. This initiative is part of Visa’s strategy to combine decentralized finance (DeFi) with traditional finance.

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