Popular payment gateway provider, Visa has released its new Visa Tokenized Asset Platform (VTAP). The firm made the unveiling on Thursday via an official blog post.Â
According to the post, the new platform will help in issuing and managing virtual assets. More so, Visa revealed that the tool is designed to support numerous assets including tokenized assets, stablecoins, and central bank digital currencies (CBDCs).
However, Visa stated that the VTAP is still in a sandbox phase and the Banco Bilbao Vizcaya Argentaria (BBVA) is testing some features of the platform. As per the firm, the tool will hit its live pilot phase in 2025 through the Ethereum network.
Visa explained that the live pilot phase will feature a few customers. Also, the payment gateway intends to make the platform interoperable across various networks for banks benefiting from its offerings.
It is worth mentioning that Visa launched the VTAP shortly after the United States Department of Justice (DOJ) filed an antitrust lawsuit against the firm. In the lawsuit, the DOJ accused Visa of running a debit payments monopoly.
Additionally, the DOJ claimed that the firm is using penalties against vendors to maintain its dominance in the market.
Key Insight into the Core Features of the Visa Tokenized Asset Platform (VTAP)
Meanwhile, in the post, Visa indicated that the initiative will suit the demands of institutional investors and banks. In addition, the VTAP offers an end-to-end infrastructure for the minting, transferring, and completing of virtual asset transactions across public and private blockchains in a secure environment.
By connecting a single API connection to the VTAP, Visa illustrated that in the future, financial institutions will be able to use the platform and interact with different clients on public and private blockchain networks. Likewise, to integrate the VTAP comes with ease for banks as it doesn’t require deep technical knowledge.
Thanks to this feature, Visa is permitting financial institutions the opportunity to enjoy the features of the VTAP in a more efficient way. Similarly, the newly launched initiative is showing promising signs of being one of the biggest innovations that will help mend the gap between TradFi and DeFi.
Furthermore, the payment processor is confident that the platform will help banks digitize and automate their workflow. Visa went on to explain how a bank can use smart contracts and fiat-backed tokens to automate the administration of complex credit lines for issuing payments when payment terms are fulfilled.
More explanation on the utilization of the tool further explains how a bank can allow their customers to acquire tokenized commodities using a fiat-backed token.
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