BBVA to Launch Token Pilot with Visa’s New Blockchain Platform in 2025

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BBVA, the prominent Spanish banking institution, is gearing up for a groundbreaking tokenization pilot using Visa’s recently launched Visa Tokenized Asset Platform (VTAP). The pilot, which is scheduled to go live in 2025, will leverage the public Ethereum blockchain.

VTAP, introduced this month, is designed to allow banks to bring fiat currencies onto the blockchain. This innovative platform is part of Visa’s broader developer offering aimed at enhancing the digital asset landscape for traditional financial institutions.

BBVA is one of the first banks to adopt VTAP and has already been collaborating with Visa to test key functionalities through the platform’s sandbox environment. These tests include the issuance, transfer, and redemption of bank tokens on a testnet blockchain, as well as the integration of these tokens with smart contracts.

In a statement, BBVA highlighted that this activity is a precursor to the planned live pilot with select customers across Europe. This initial pilot will be conducted using the public Ethereum blockchain, though an exact timeline for the launch is yet to be announced.

This isn’t BBVA’s first venture into blockchain. In 2019, the bank partnered with Spanish insurer Mapfre to issue the first structured green bond using smart contracts. In 2022, BBVA collaborated with BME and the Inter-American Development Bank (IDB) to execute Spain’s first bond issuance utilizing blockchain technology developed by ioBuilders. For this latest bond issuance, BBVA has also introduced dollar tokenization to facilitate settlements throughout the bond’s lifecycle.

BBVA’s continued exploration of blockchain technology positions it at the forefront of innovation in the financial sector, signaling the potential for broader adoption of digital assets in mainstream banking.

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