A stablecoin is a type of digital money that is designed to keep its value steady. It is often tied to traditional currencies like the euro or the U.S. dollar.
With help from Visa, BBVA plans to launch its stablecoin next year. It aims to join the ranks of other financial giants in this crowded field.
Spanish Bank Aims to Enter Digital Asset Market by 2025
In an interview with Fortune, Francisco Maroto, the head of digital assets and blockchain at BBVA, shared that the bank is currently in the sandbox phase of a new Visa program. This means they are testing their stablecoin idea to make sure it works well before officially launching it. Maroto hopes to reach a prototype phase and begin live activities by 2025. It’s like preparing a recipe; they want to get everything just right before serving it up!
BBVA hasn’t decided yet how their stablecoin will be backed. It could be tied to bank deposits, money market funds, or even fiat currencies. They are regular currencies like the euro or dollar. Also, Maroto mentioned that they plan for the stablecoin to be used as a settlement layer on exchanges. This means that it will help facilitate transactions between buyers and sellers.
NEW: Visa is tokenizing assets on Ethereum
The largest payments company in the world just announced their tokenization platform.
BBVA, the 2nd biggest bank in Spain, with over €750 BILLION in assets, will use it to launch a stablecoin next year.
The institutions are here. pic.twitter.com/Yh2w5ULre4
— RWA.xyz (@RWA_xyz) October 3, 2024
BBVA has been working in the digital asset space since 2014, which shows they’ve been ahead of the curve. Maroto believes this new project will allow the bank to take advantage of the growing trend of tokenization—the process of turning real-world assets like real estate and private credit funds into digital tokens.
He remarked, “We realized that blockchain could transform the way we exchange value digitally and, consequently, affect the way the financial system works.” This means that by using blockchain technology, they can change how money is handled, making it more efficient and secure.
More About Visa & Tokenization
Visa has just launched the Visa Tokenized Asset Platform (VTAP). VTAP aims to provide a seamless experience for financial institutions looking to integrate digital assets into their services. By using this platform, banks can tokenize traditional currencies, which means they can convert them into digital tokens that retain the same value.
A new era of tokenization is here. The Visa Tokenized Asset Platform (VTAP) is designed to help banks bring fiat currencies onchain in a safe, seamless, and efficient manner. Learn more: https://t.co/1acDBENxV8 pic.twitter.com/WuHmPLc9xr
— VisaNews (@VisaNews) October 3, 2024
This process opens up new possibilities for transactions and enhances the overall efficiency of the financial system, making it easier for customers to use their money in innovative ways.
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