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With its stablecoin initiative, BBVA aims to extend its services to underbanked populations, using digital currency as a tool for greater financial access and inclusion.
Key Notes
Spanish bank BBVA to enter the stablecoin market next year with the launch of its own native token.The bank is already developing the digital asset through Visa's sandbox platform dedicated for the creation of tokenized assets like stablecoins and CBDCs.Currently, BBVA offers crypto trading and custody services to Swiss private and institutional customers with plans to expand to Turkey in the coming months.Banco Bilbao Vizcaya Argentaria (BBVA), the second-largest bank in Spain, is preparing to enter the highly competitive stablecoin market, currently dominated by Tether and Circle, through a partnership with Visa, the global payment giant.
On Thursday, BBVA’s head of digital assets and blockchain, Francisco Maroto, revealed in an interview with Fortune that the bank is participating in Visa’s newly launched sandbox program.
Visa Unveils New Tokenized Asset Platform
The Visa stablecoin program, known as the Visa Tokenized Asset Platform (VTAP), was recently introduced to the market. The platform is designed to empower banks with the tools and expertise needed to securely mint, transfer, and settle digital assets across public and permissioned blockchains.
According to Visa, VTAP is available to both central banks and financial services firms looking to create their own tokenized assets, including stablecoins and Central Bank Digital Currencies (CBDCs).
The program was launched with BBVA participating as a tester. The bank has already begun experimenting with the development of its own token. Maroto said the bank aims to reach the prototype phase in 2025, with plans to launch the stablecoin later that year.
BBVA said that its decision to join the Visa’s sandbox program was influenced by the company’s strong reputation and its compliance with regulatory obligations.
BBVA Joins the Growing Stablecoin Market
The Spanish bank is the latest financial services company to enter the stablecoin market, following in the footsteps of Revolut, a UK-based online banking firm.
Maroto told Fortune that the stablecoin, once launched, will be used specifically to settle transactions on crypto exchanges and other digital asset trading platforms.
However, BBVA has yet to decide whether the stablecoin will be backed by reserves of the European euro for local customers or the United States dollar for international settlements. Although, the bank is leaning toward a euro-backed stablecoin due to its substantial presence in Europe.
Regardless, as a stablecoin, the digital asset will be designed to maintain a stable value, even in the face of crypto winter.
BBA to Exclusively Mint the New Stablecoin
BBVA’s head of digital assets confirmed that the stablecoin will be available on exchanges offering tokenized assets, but the bank will retain exclusive rights to mint the token. Additionally, BBVA will handle other responsibilities, such as the burning mechanism that converts fiat into crypto within its ecosystem.
As for its availability, the upcoming stablecoin will be offered exclusively to BBVA’s European customers. Maroto noted that the bank has no immediate plans to expand the digital asset to international markets like the United States.
Meanwhile, this is not the bank’s first foray into the crypto market. BBVA already has a strong presence in the industry, offering private banking and institutional customers in Switzerland the ability to buy and sell Bitcoin (BTC), Ethereum (ETH), and the USDC stablecoin, in addition to providing custody services for these assets.
Maroto further revealed that with BBVA’s established position in the European crypto sector, the bank’s new venture into the stablecoin market will allow it to benefit from the growing trend of tokenizing assets such as real estate and private credit funds.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
