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Spain’s BBVA Eyes 2025 Stablecoin Launch in Collaboration with Visa

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  • BBVA plans to introduce its stablecoin in partnership with Visa, currently in the sandbox development phase.
  • The bank is evaluating potential backing options for the stablecoin, including deposits, money market funds, and fiat currencies.
  • BBVA aims to build its stablecoin around the euro, with applications for settlements in tokenized asset exchanges.

The second largest financial institution in Spain, BBVA, is soon going to enter the rapidly growing stablecoin market by 2025. In combination with Visa, the financial giant is working through the sandbox for a Visa program intended to help companies issue tokenized assets. Francisco Maroto, head of digital assets and blockchain at BBVA, shared insight into the bank’s ambitions during a recent interview.

BBVA Exploration of Asset Backing

BBVA has been working on digital assets since 2014, and this expected stablecoin is viewed as a natural next step to reassure regulatory authorities of a moving financial landscape. According to Maroto, blockchain will be a disruptive technology for the new creation and representation of digital value and, expansively, for the whole financial system.

However, details on what and how the stablecoin is collateralized have yet to be decided; Maroto did note a few options: deposits, money market funds, and even fiat currencies like the euro and U.S. dollar.

The stablecoin space is becoming more competitive as different traditional financial players enter. For example, PayPal launched its PYUSD stablecoin in 2023, which only underlined the sector’s growth.

Here, cooperation with Visa has become strategic for BBVA because it uses the established reputation of Visa and its regulatory compliance to build a stablecoin that fits well within European regulatory frameworks.

Visa’s New Product for Financial Institutions

Visa’s latest announcement introduced a product that would enable financial institutions to create fiat-backed tokens. This means that the banks would decide upon asset reserves that would range between fiat currencies and deposits.

For now, these tokens will function within the specific bank chain, but the long-term goal is interoperability within different financial institutions. The new stablecoin of BBVA will likely be euro-denominated, thus allowing settlements on the exchanges dealing in tokenized assets. The bank sees itself operating the mint-burn mechanisms that convert fiat into crypto ecosystems.

However, despite such ambitious plans, the U.S. market does not currently feature in its plans. It currently offers private banking and institutional clients custody and trading services in Switzerland for Bitcoin, Ethereum, and USDC while launching operations in Turkey.

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Crypto Trailblazer: David Riegelnig Redefines Trading With BTC & ETH Spot Launch

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Crypto takes the lead as Rulematch, led by former Credit Suisse executive David Riegelnig, unveils a groundbreaking trading platform tailored for global banks and securities firms. The Zurich-based startup strategically enters spot trading for Bitcoin (BTC) and Ethereum (ETH) against USD, aligning itself with the growing interest of traditional financial institutions in the digital asset landscape.

Rulematch, spearheaded by David Riegelnig, is making waves as a crypto trading venue tailored for traditional financial powerhouses, emphasizing the significant involvement of banks and securities firms worldwide in the digital asset landscape. 

Distinguishing itself by operating solely as a trading platform, Rulematch focuses on matching buying and selling interests, mirroring the structure of traditional financial markets.

Riegelnig underscored the vibrant crypto scene in Europe, the UK, and select Asian markets, where specific banks have entered the realm of crypto trading. Noteworthy is Rulematch’s momentum, with seven banks and securities firms, including BBVA and DLT Finance, already on board. The startup is poised for further expansion, backed by $14 million in investments from key players such as ConsenSys Mesh, Flow Traders, and FiveT Fintech.

Crypto Resurgence: Rulematch Shapes Landscape For Institutional Participants

As the crypto market undergoes a resurgence, Rulematch emerges as a pivotal player, reshaping the landscape for institutional participants and contributing to the ongoing evolution of the digital asset ecosystem.

According to the announcement, Rulematch strategically utilizes Nasdaq’s pre-trade risk, trading, and market surveillance technology to ensure transparency and resilience in its operations. The platform’s matching engine, hosted in two data centers in the Zurich metro area, provides unparalleled speed, with participants benefiting from execution times as low as 30 microseconds.

Introducing a net settlement mechanism, Rulematch enhances capital efficiency for traders, enabling them to trade with up to 75% less upfront liquidity compared to existing trading venues. 

The platform’s commitment to institutional-grade liquidity, facilitated by designated market makers like Flow Traders and Bankhaus Scheich Wertpapierspezialist, paves the way for a new era in institutional crypto trading.

Amidst growing regulatory challenges and concerns in the U.S. crypto market, Rulematch’s announcement has garnered significant attention from global investors. The startup’s innovative approach, coupled with strategic partnerships and cutting-edge technology, signifies a pivotal moment in the convergence of traditional and digital asset markets.