In this commentary, the speaker explains how stablecoins have pressured traditional banks to adopt blockchain-like features while keeping funds within the banking system. Visa introduced the Visa Tokenized Asset Platform (VTAP) in 2024, allowing banks to mint, burn, and transfer fiat‑backed tokens—so‑called tokenized deposits—that retain the programmability, 24/7 availability, and speed of stablecoins but remain liabilities of the banks themselves. The speaker highlights Visa’s pilots, including BBVA’s sandbox on public Ethereum, $7 billion annualized settlement volume on VisaNet, and over 160 stablecoin‑linked card programs. He also notes parallel efforts by the Bank for International Settlements (Project Agora) and a tokenized‑deposit network being built by the Clearinghouse, a consortium of major U.S. banks. The overall narrative is that banks, fearing the loss of deposit monopoly to crypto issuers, are using Visa’s infrastructure to rebuild deposits that move like stablecoins without ceding control to non‑bank token issuers.
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Stablecoins literally scared banks enough that Visa is helping them copy the best parts without letting deposits leave the banking system. On June 10th, Visa announced a technology layer that lets banks turn deposits into programmable, always-on digital money. Visa said banks can match the speed and flexibility of stablecoins while keeping funds on bank balance sheets. Stablecoins pretty much prove people want dollars that move 24/7, but banks do not want to leave deposits and have their system move in to tokens issued by crypto companies. So Visa is giving banks a defense, pretty much a bank-owned version of a stablecoin experience. A stablecoin like USDC is usually a liability of a non-bank issuer. A tokenized deposit is a digital version of money a bank already owes its customers. So the money can become programmable and usable in smart contracts, but it still stays inside the commercial banking system. In 2024, Visa launched VTAP, a Visa Tokenized Asset Platform. It helps banks mint burn and transfer fiat-backed tokens, including tokenized deposits and stablecoins. Visa said the BBVA was already using the VTAP sandbox with expected live pilots on public Ethereum. They're going to put this on Ethereum. Visa's network already reaches more than 15,000 financial institutions across more than 200 countries and territories. So this is Visa trying to make tokenized money usable inside the existing global payment system. Visa said its stablecoin settlement pilots have already moved billions across VisaNet. As of March 2026, these pilots were running about $7 billion in annualized pace. Visa said issuing banks are already settling 7 days a week on-chain, and Visa is working to extend that to acquirers as well. On the card side, Visa said it has more than 160 stablecoin-linked card programs live or in development right now. Visa is not saying that stablecoins are going away. Visa is saying stablecoins change what money should feel like. Fast, programmable, always on, and global. Banks are literally trying to absorb the features of blockchain. The Bank for International Settlements is pushing the same direction through Project Agora. 8 central banks and more than 40 financial institutions testing tokenized central bank reserves and tokenized commercial bank deposits. The Wall Street Journal also reported that major US banks through the Clearinghouse are planning a tokenized deposit network to answer crypto competition. The Clearinghouse is owned by major banks including JP Morgan, Bank of America, Citibank, and Wells Fargo. Crypto won the product argument completely. Stablecoins pretty much showed the banks what digital money should do. Now Visa is helping the banks rebuild deposits so they can move like stablecoins without leaving the entire banking system and controlling the monopoly.
