Visa unveils platform for global banks to issue stablecoins, other tokens

Current Context: Visa has introduced the Visa Tokenized Asset Platform (VTAP), a new product designed to help global banks issue and manage fiat-backed tokens, including stablecoins, on blockchain networks.

• The platform, currently in the testing phase, will be available for live operations starting in 2025.
• VTAP allows banks to mint, burn, and transfer tokens, and integrate blockchain technologies into their operations.
• This move is expected to enhance the efficiency of banking transactions and facilitate a smoother transition to a more digitized financial ecosystem.

Question:

1 What is the primary purpose of the Visa Tokenized Asset Platform (VTAP)?

• A) To allow global banks to issue and manage fiat-backed tokens, including stablecoins
• B) To enable peer-to-peer cryptocurrency trading
• C) To provide blockchain-based gaming solutions
• D) To create a marketplace for non-fungible tokens (NFTs)

Answer: A) VTAP is designed to help global banks manage fiat-backed tokens, such as stablecoins, on blockchain networks.