Visa Taps Anchorage Digital to Bring Western Union’s USDPT Into Stablecoin Settlement

Key Takeaways:

• Visa will provide its USDPT as an option for the settlement of stablecoins.
• USDPT is issued by Anchorage Digital Bank which is regulated by the U.S. federal government.
• Additional stablecoins that are issued by the Anchorage dollar will be added to Visa’s settlement network later.

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Visa is introducing another regulated stablecoin to its settlement system with the support of a new partnership with Anchorage Digital. First, USDPT, Western Union’s dollar-backed stablecoin, provides their eligible Visa partners a new option to settle obligations via blockchain-based assets.

As of today, Visa and authorized VisaNet partners are now in a position to consider USDPT as a VisaNet obligation settlement asset that is native. The agreement opens up a future path for other tokens to be considered and USDPT is the first stablecoin launched by Anchorage Digital Bank to be backed.

The integration takes USDPT’s payments function beyond its original scope in the payments network of Western Union. The stablecoin will be used for cross-border transactions and will be settled on the Solana network, which provides quick and affordable blockchain settlements. Anchorage claims USDPT is fully backed by U.S. dollars and issues under federal regulation.

Read More: Visa Adds Monad to Stablecoin Settlement Network

Anchorage Digital Bank is the act issuer and infrastructure provider in the scheme.

The bank already has a number of stablecoins of this type, such as Tether’s USDT, Ethena Labs’ USDtb, OSL Group’s USDGO and Western Union’s USDPT. Anchorage states that its stablecoins are redeemable back for U.S. dollars on a 1:1 basis, and attestations of reserves are published in accordance with its regulation.

By connecting USDPT to Visa’s systems, the participation of other institutions will enable them to use the digital asset in payments activity settlement process. Eligible partners may leverage stablecoins for settlement along with preserving their exposure within a federally supervised issuance framework, in addition to calling on traditional banking rails.

Among other important findings of the deal are an increase in the stabilitycoins’ penetration of the back-end services sector beyond merely crypto trading.

This movement is driving Anchorage to build around it using Atlas, its institutional settlement network. The platform supports off-exchange settlement, collateral management and cross-border transfers, allowing institutions to move digital assets without depending entirely on conventional payment schedules.

The Visa integration adds that model to payments use cases. In addition to USDPT as a crypto product, its role is to be included directly into the settlement process of existing financial networks.

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USDPT is just the first step. Anchorage and Visa noted that the partnership offers an opportunity to learn about Anchorage Digital Bank’s ability to support other stablecoins. As yet no other equipment or release information have been announced.

This means the remaining step hinges on what stablecoin infrastructure Visa decides to support and what percentage of wallet operators adopts the stablecoin-settlement feature in its platform.

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