Visa launches a new product to issue tokens on Ethereum

Visa, one of the main global giants in the digital payments sector, has announced the development of an innovative product designed to help banks issue tokens guaranteed by fiat currency on the Ethereum network. 

This step represents a strategic move for Visa, which aims to integrate more deeply with the blockchain ecosystem. One of the first financial institutions to test this new platform will be BBVA, one of the main Spanish banks, which plans to launch a live pilot project by 2025.

The tokens guaranteed by Fiat and Visa’s choice with Ethereum

The tokens guaranteed by fiat, commonly known as stablecoin, are cryptocurrencies tied to a traditional currency, such as the US dollar, the euro, or any other legal currency. The main characteristic of these tokens is their value stability, which makes them less volatile compared to cryptocurrencies like Bitcoin or Ethereum.

This stability makes them particularly suitable for transactions and daily payments, especially in a blockchain context, where volatility often represents an obstacle.

The new product from Visa will allow banks to issue their own fiat-backed tokens on the Ethereum network, one of the most widely used and secure blockchains in the world.

This system will allow financial institutions to create digital versions of their traditional currencies, offering greater efficiency in transactions and facilitating interoperability between traditional currencies and criptovalute.

Ethereum is one of the most established and secure blockchains, famous for its ability to handle smart contracts. This makes it an ideal platform for the issuance and management of fiat-backed tokens. 

Visa has chosen Ethereum for its extensive ecosystem and robust technical infrastructure, which offers banks and financial institutions a secure and flexible platform for the issuance and management of stablecoin.

Furthermore, Ethereum supports a series of standards for tokens, such as ERC-20, which is widely used to create digital assets. These standards simplify the integration of tokens issued by banks into a wide range of existing blockchain applications, thus increasing their use and acceptance.

BBVA and the launch of the pilot project in 2025

BBVA, one of the largest banks in Spain, was among the first financial institutions to recognize the potential of blockchain and cryptocurrencies. 

With the adoption of the new Visa product, BBVA intends to launch a live pilot project by 2025. This project will allow the bank to explore the issuance of fiat-backed tokens on the Ethereum network, offering customers a new mode of payment and value transfer.

The launch of the pilot project represents an important milestone for BBVA, which has already experimented with blockchain-based solutions in the past. The bank hopes to achieve a leadership position in the blockchain-based digital payments sector and to improve its service offering globally. 

Thanks to the new Visa system, BBVA will be able to offer its customers a more efficient solution to manage cross-border transactions and reduce associated costs.

The product developed by Visa brings with it a series of advantages for both banks and consumers. On the side of financial institutions, the issuance of fiat-backed tokens on Ethereum will allow for greater transparency in transactions, reducing the need for intermediaries and lowering operational costs. Banks will also be able to leverage the capabilities of smart contracts to automate and simplify numerous processes.

For consumers, fiat-backed tokens will offer a safe and stable digital alternative to traditional currencies. This could facilitate digital payments on a global scale, offering faster transaction times and lower costs, especially in international transactions.

The role of Visa in the blockchain revolution

With the launch of this new product, Visa is clearly affirming its commitment to being a key player in the evolution of cryptocurrencies and blockchain technology. 

The company has already collaborated in the past with various cryptocurrency platforms and has developed innovative solutions to integrate digital payments based on blockchain into the traditional financial system.

The introduction of a solution for the issuance of fiat-backed tokens on Ethereum represents a step forward towards greater adoption of blockchain by traditional financial institutions. 

Visa is demonstrating that it is ready to lead this transformation, creating the foundations for a future in which digital payments will increasingly be based on decentralized technologies.

The announcement by Visa and the adoption of the new product by BBVA mark a crucial moment in the landscape of cryptocurrencies and blockchain. 

Thanks to the collaboration with the Ethereum network, Visa positions itself as a strategic partner for banks looking to explore the issuance of fiat-backed tokens. BBVA’s pilot project in 2025 will be a fundamental test for the future of digital payments, paving the way for broader adoption of blockchain solutions in the global financial sector.