BBVA to join stablecoin market in partnership with Visa

Spanish bank BBVA announced that it is working on its own stablecoin with the support of credit card issuer Visa.

According to Francisco Maroto, head of digital assets and blockchain, the bank is ready to join the stablecoin market, although it is not yet known “if the asset will be backed by deposits, market funds or fiat currencies.”

BBVA is in the testing or sandbox phase, “within a Visa program designed to facilitate the creation of tokenized assets, called Visa Tokenized Asset Platform (VTAP).”

The bank plans to move towards the prototype stage to begin live operations in 2025. At the moment, it has not been announced whether the stablecoin will be backed by “bank deposits, money market funds or fiat currencies such as the euro or the US dollar.”

According to Maroto, the goal of BBVA’s stablecoin is to be used in the settlement layer of cryptocurrency exchanges. “We realized that blockchain technology can revolutionize the way we exchange value digitally and, consequently, change the way the financial system works,” the official told Fortune.

Regarding the decision to partner with Visa, he highlighted that they evaluated the company’s prestige and its adherence to European regulations, alluding to the MiCA Law.

Moroto hinted at the possibility of BBVA launching its own euro-based stablecoin, thanks to its extensive presence in Europe, and that it be used in “settlement in markets that offer tokenized assets, with BBVA managing the minting and burning processes to integrate these ecosystems.”

It is important to remember that the Spanish bank already offers custody and marketing services for “bitcoin, ether (ETH) and USD Coin (USDC) in Switzerland for private and institutional banking clients, and is currently seeking to expand into Turkey.”

M.Pino

Source: iProup

(Reference image source: Michael Förtsch in Unsplash)

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