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

Visa Tokenized Asset Platform (VTAP) will enable the development of fiat-backed tokens powered by smart contracts to help digitize and automate existing processes that will then power the exchange of real-world assets (RWAs), according to an announcement seen by CoinDesk.

A bank would use Visa's new platform to purchase tokenized RWAs such as commodities or bonds with near-real-time settlement, using a token, the statement said. One of the first financial institutions to use VTAP will be Spanish bank BBVA, who expects to rollout a live pilot in 2025.

Visa's work in blockchain and digital assets is well established, with the company processing cryptocurrency payments in stablecoin USDC on Ethereum in March 2021.

Earlier this month, Visa became a partner of Brazil's central bank in its pilot project toward a central bank digital currency (CBDC).

The news was first reported by Blockworks.

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