BBVA and Visa will jointly launch a Euro stablecoin next year, which will be used for settlement in the tokenized asset market.

According to Fortune, the Spanish bank BBVA is actively entering the digital currency field, planning to launch a stablecoin in 2025 in collaboration with Visa. According to internal sources, BBVA is currently engaged in a collaboration project with Visa, which is in the sandbox phase, aimed at assisting financial institutions in issuing stablecoins. BBVA's goal is to develop a stablecoin prototype in 2025 and have it operational in the same year.

BBVA has mentioned that they may introduce a Euro-backed stablecoin in the future but has not yet decided whether their stablecoin will be backed by deposits, money market funds, or fiat currency, and will be used as the settlement layer for asset tokenization exchanges, such as tokenized asset trading markets for real estate and private credit fund.

Visa provides banks with stablecoin issuance services, aligning with future tokenized asset markets.

Visa's New Stablecoin Project to Enhance Interoperability Across Multiple Chains

Visa's recent launch of a new project aims to allow financial institutions to issue stablecoins backed by fiat currencies. Different banks can decide how to use these stablecoins based on their own needs, sparking interest from BBVA.

Visa refers to these stablecoins as "fiat-supported tokens," which initially only operate within banks. However, Visa's long-term goal is to enhance interoperability between different institutions, improving the utility of stablecoins across multiple chains.

With Geographic Advantage, BBVA May Introduce Euro-Backed Stablecoin

BBVA stated that choosing Visa over existing stablecoin solutions was based on Visa's advantages in compliance and brand stability. As one of the earliest adopters of this new project, BBVA holds an advantage in operating in Europe. In the future, they may establish a stablecoin backed by the euro, indicating that stablecoins could be used for settlement on tokenized asset exchanges, with BBVA responsible for conversion and destruction. Europe is just beginning to regulate stablecoins, allowing BBVA to adapt to relevant regulations more quickly.

When asked about BBVA's current business scope and future expansion plans, they only revealed that they do not plan to expand their business to the United States in the short term. Currently, they provide custody and trading services for Bitcoin, Ethereum, and USDC to private banks and institutional clients in Switzerland, with plans to expand to Turkey in the future.