Photo credit: Visa

Visa is set to introduce the Visa Tokenized Asset Platform (VTAP), a new platform designed to help banks issue stablecoins and tokenized deposits. This move comes as financial institutions and businesses show increasing interest in leveraging cryptocurrencies and blockchain technology to enhance their operations.

According to Bloomberg, VTAP will enable banks to “mint, burn, and transfer” tokens. Currently in the testing phase, the platform is expected to go live next year, Visa announced.

Stablecoins, which are cryptocurrencies typically pegged to assets like the dollar, have been gaining traction. Spanish bank BBVA is already testing the platform and plans to pilot it for select customers on the Ethereum blockchain next year.

“Visa has been at the forefront of digital payments for nearly sixty years, and with the introduction of VTAP, we are once again setting the pace for the industry,” said Vanessa Colella, Visa’s global head of innovation and digital partnerships.

Stablecoins and other fiat-backed tokens are becoming increasingly popular, with companies like PayPal and Stripe allowing merchants to accept stablecoins for online transactions. Colella added, “We’re excited to leverage our experience with tokenization to help banks integrate blockchain technologies into their operations.”

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