Visa Launches New Product to Help Banks Issue Tokens on Ethereum
Payments giant Visa launches VTAP, helping banks issue and test fiat-backed tokens on the blockchain.
Visa has introduced a new product called the Visa Tokenized Asset Platform (VTAP), which will serve banks that want to issue fiat-backed tokens on the Ethereum network.
The goal of the initiative is to create a global standard for interactions between financial institutions and blockchain technology. Through the new product, banks can initiate fiat tokens using smart contracts, digitizing and automating existing processes.
From there, banks can also easily trade tokenized real assets (RWA), such as commodities or bonds, with near-instant settlement. The first bank to pilot VTAP is Spain's BBVA, expected in 2025.
Visa is no stranger to the blockchain and digital assets space. They have been accepting USDC stablecoin payments on Ethereum since March 2021. Recently, the giant also became a partner with the central banks of Brazil and Hong Kong in a CBDC digital currency pilot project.
In another notable development, Visa is facing a lawsuit from the US Department of Justice (DOJ). The US government accuses the company of violating antitrust laws, intentionally eliminating competitors in the credit card and payment processing industry. Moreover, Visa is also said to threaten to “penalize” customers if they use competitors' services.
Global online payments giant Visa has chosen Solana as its blockchain to test stablecoin payments on the Solana blockchain.
According to an announcement posted on the evening of September 5, Visa will conduct a trial of stablecoin payments on the Solana blockchain. The company will cooperate with two partners, Worldpay and Nuvei, to conduct the test.
Visa has also migrated millions of USDC from Ethereum to Solana to help partners test payments through the VisaNet network.
Mr. Cuy Sheffield, Director of Crypto at Visa, said that he will increase the acceptance of stablecoin payments to meet the growing demand for cross-border remittances from many customers.
“By using USDC stablecoins and global blockchain networks like Solana and Ethereum, we are improving the speed of cross-border payments for customers, as well as providing a modern option for users to send or receive money to their Visa accounts.”
Visa’s move comes shortly after rival PayPal announced its own stablecoin, PayPal USD (PYUSD), in a bid to gain market share in stablecoin payments.
Visa is the second e-commerce giant to partner with Solana in recent weeks, following Shopify in mid-August.
