Visa is set to introduce a new platform that will allow banks to issue fiat-backed tokens on the Ethereum network. The Visa Tokenized Asset Platform (VTAP) will leverage smart contracts to facilitate the creation of these tokens, which aim to digitize and streamline processes for the exchange of real-world assets (RWAs).

Spanish bank BBVA is one of the first financial institutions expected to use VTAP, with plans for a live pilot in 2025.

This new platform will allow banks to purchase tokenized RWAs, such as commodities or bonds, with near-real-time settlement using these fiat-backed tokens. Visa’s latest innovation in the digital asset space continues its established role in blockchain technology, which began when it started processing cryptocurrency payments in USDC on Ethereum in March 2021.