Visa-Backed Stablecoin by BBVA Kicks Off on Ethereum in 2025

BBVA might be the first global bank to issue its own stablecoin on Ethereum (ETH) blockchain. The inaugural stage of the live pilot with select customers is expected to start as soon as 2025 on Visa's tokenization platform, an official statement says.

Spanish banking giant Banco Bilbao Vizcaya Argentaria (BBVA) is preparing to launch a pilot version of its stablecoin on the Ethereum (ETH) blockchain. The bank has selected Visa's brand-new tokenization platform, VTAP, as the technical foundation for this groundbreaking product.

BBVA to launch Visa-backed stablecoin on Ethereum in 2025BBVA is reportedly set to become the first global bank to issue its own stablecoin on the Ethereum (ETH) blockchain. The initial phase of the live pilot will involve select customers and is expected to begin as early as 2025, according to an official statement. The pilot will be conducted on Visa's tokenization platform.

Representatives from BBVA are already putting VTAP to the test in a sandbox environment, experimenting with its core functionalities. This includes issuing, transferring and redeeming a bank token on an Ethereum (ETH) testnet.

Cuy Sheffield, Visa's Head of Crypto, highlighted the critical role of this project in advancing the stablecoin sector and facilitating banks' transition to Web3 as a new technical foundation:

Excited to introduce the Visa Tokenized Asset Platform, a new Visa product to help bring banks onchain, and our partnership with @bbva to power their first stablecoin.

As reported by U.Today in September 2024, Visa forged a long-term partnership with hardware crypto wallet manufacturer Tangem.

Visa, Tangem to Launch Web2/Web3 Banking App with Crypto, Fiat PaymentsThe collaboration will see Tangem build the complete Web2/Web3 banking application with crypto and fiat payment support through Tangem's wallet, which is powered by Visa.

Francisco Maroto, Head of Blockchain and Digital Assets, BBVA, views the new integration as a significant catalyst for blockchain adoption in the banking and payments industries:

We are proud to continue spearheading the exploration of tokenized solutions with Visa through its VTAP platform. This collaboration marks a significant milestone in our exploration of the potential of blockchain technology and will ultimately help enable us to broaden our banking services and expand the market with new financial solutions.

Meanwhile, the Visa team noted that the new VTAP platform will enable financial institutions to issue and manage fiat-backed tokens on blockchain networks.

Developed by Visa's in-house blockchain experts, the platform will be designed to bring programmability and cross-network accessibility to banks' stablecoin solutions being developed on public blockchains. To achieve this, fiat-backed tokens will be deployed within smart contracts.