In a major move, BBVA, a Spanish multinational banking giant, said it plans to launch its stablecoin on the Ethereum blockchain. This project will be powered by Visa’s new tokenization platform, VTAP. This could make BBVA the first global bank to issue a stablecoin on the network.
This comes at the growing stablecoin market, and altcoins are seeing widespread adoption from key industry players.
BBVA’s Leap into Stablecoin Issuance
BBVA’s upcoming stablecoin initiative on the Ethereum blockchain is not just a technical experiment. It is a bold testament to the future of banking.
The pilot, expected to go live by 2025, will begin with a select group of customers. This project aims for BBVA to mint, transfer, and redeem stablecoins while leveraging Visa’s VTAP. Above all, it is geared towards offering a seamless experience for its customers.
In an interview, Francisco Maroto, BBVA’s head of blockchain and digital assets, expressed that this alliance with Visa symbolizes a pivotal moment in the bank’s journey toward blockchain adoption.
He added that it will help the bank broaden its banking services and expand the market with new financial solutions.
Currently, BBVA is testing its stablecoin’s core functionalities within the VTAP sandbox. These tests involve issuing, transferring, and redeeming stablecoins on a testnet of the Ethereum blockchain.
VTAP, the Backbone of the Stablecoin Revolution
Visa’s VTAP platform is central to BBVA’s stablecoin project. It will serve as the technical foundation for the bank’s transition into the blockchain space.
VTAP, developed by Visa’s in-house blockchain experts, is designed to help financial institutions issue and manage fiat-backed tokens on blockchain networks.
Its programmability and cross-network accessibility are key features that aim to support BBVA and others in building and deploying stablecoin solutions on public blockchains such as Ethereum.
Cuy Sheffield, Visa’s Head of Crypto, emphasized the project’s significance, highlighting its milestone in Visa’s broader vision for Web3 banking.
He stated that this initiative could pave the way for decentralized financial technologies to work with traditional systems. Creating more efficient, transparent, and accessible banking services.
A Step Toward Web3 Banking and Financial Innovation
The partnership between BBVA and Visa exemplifies the potential of blockchain to revolutionize traditional banking. This comes as banks explore the possibilities of Web3 technologies to enhance banking services.
Visa’s innovative move continues cementing its position as a leader in bridging traditional finance and crypto.
Last month, Visa entered a long-term partnership with Tangem, a producer of crypto hardware wallets. Together, they are experimenting with developing a comprehensive Web2/Web3 banking application that will support both fiat and cryptocurrency payments.
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