Visa now lets partners settle on VisaNet with Western Union's USDPT stablecoin, issued by Anchorage Digital Bank

Summary

Anchorage Digital said Thursday it is working with Visa so that select stablecoins issued by its federally chartered bank can be used to settle VisaNet obligations, starting with Western Union's USDPT, according to Decrypt and The Block.

Visa and eligible partners can now use USDPT for settlement, and the companies set up a framework to consider adding more Anchorage-issued stablecoins later, both outlets reported.

Anchorage CEO Nathan McCauley said 'speed alone won't bring institutions onchain' and that institutions 'need a regulated institution behind the money.'

The deal is part of Anchorage's push to become a settlement bank for stablecoins and extends Visa's growing stablecoin settlement program, the outlets said.

Key facts

• The Block: USDPT debuted in May on Solana, with Anchorage handling issuance and Fireblocks the wallet and settlement infrastructure; Western Union first launched it in the Philippines and Bolivia. (The Block)
• Anchorage also issues stablecoins for Tether (USAT), Ethena (USDtb) and others, both outlets reported; The Block adds OSL Group's USDGO, Falcon Finance's fUSD and Zelle's ZLUSD. (The Block)
• The Block: Visa said in September its annualized stablecoin settlement run rate reached $20 billion, more than 15 times the year-earlier figure. (The Block)
• Visa vice president Dan Roesbery called USDPT 'another trusted, institution-grade option' for settling with Visa, Decrypt reported. (Decrypt)
• The Block: total stablecoin supply has fallen to around $280 billion from $300 billion in March, per its data dashboard. (The Block)