According this Coindesk, this platform will let banks create tokens that represent real-world assets like bonds and commodities, all backed by traditional money, known as fiat currency.
The Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) is already on board to try it out. Let’s explore more about this new tokenized asset platform.
Visa’s New Platform Revolutionizes Transactions with Tokenized Assets
So, what does VTAP mean for banks and their customers? Well, it’s like having a magic key that opens up new doors for money transfers and transactions. VTAP is set to launch a pilot program in 2025, and it aims to make several financial operations smoother and cheaper.
For instance, it can help bank customers send money to each other instantly, allowing for real-time transactions. It also opens the door for interbank transfers, which means banks can send money to each other faster and more efficiently, using something called wholesale central bank digital currencies (CBDCs).
❗️@Visa has rolled out the Visa Tokenized Asset Platform (#VTAP)
VTAP enables the development of fiat-backed tokens powered by smart contracts. Spanish bank #BBVA will become the first financial institution to use the platform.
👉 https://t.co/bu1mxb01vu pic.twitter.com/WLibZGa5Ka
— 🇺🇦 CryptoDiffer – StandWithUkraine 🇺🇦 (@CryptoDiffer) September 26, 2024
Imagine a world where transferring money across borders is as easy as pie. VTAP aims to do just that for multinational companies. With this platform, businesses will be able to make cross-border transactions more quickly and with fewer costs. This is important because many companies today operate in multiple countries and need to send money to different locations.
What makes this platform so special is its use of Ethereum, a popular blockchain that many people trust. By using blockchain technology, VTAP ensures that transactions are secure and transparent.
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