Visa and BBVA to Launch Fiat-Backed Tokens on Ethereum by 2025
- BBVA is collaborating with Visa to launch a stablecoin using the Visa Tokenized Asset Platform by 2025.
- The stablecoin may be backed by various assets, including fiat currencies, and will be used for settlement on exchanges.
- This partnership aims to enhance BBVA's services and capitalize on the growing trend of asset tokenization in Europe.
In 2025, BBVA, a Spanish bank, plans to launch a stablecoin in collaboration with Visa, utilizing the Visa Tokenized Asset Platform (VTAP). This initiative aims to issue fiat-backed tokens on blockchain networks, with a pilot program set for the public Ethereum blockchain. BBVA has been involved in the digital asset space since 2014 and is looking to leverage blockchain technology to transform digital value exchange. The stablecoin may be backed by various assets, including fiat currencies like the euro or U.S. dollar, and is intended for use in settlement on exchanges dealing with tokenized assets. BBVA's decision to partner with Visa stems from the latter's established brand and regulatory compliance, positioning the bank favorably within the European market, which has recently implemented stablecoin regulations. The collaboration is expected to enhance BBVA's banking services and expand its financial solutions, particularly in Europe, where the bank primarily operates. Despite the ambitious plans, BBVA does not foresee immediate expansion into the U.S. market, focusing instead on its European presence and the growing trend of asset tokenization.