[DigitalToday reporter Yoonseo Lee] Crypto financial platform Anchorage Digital is joining hands with Visa to provide its issued stablecoin as a settlement asset on the Visa payment network.
On Nov. 12 (local time), blockchain media outlet Decrypt reported that under the partnership, eligible companies can meet settlement obligations from VisaNet transactions using USDPT, Western Union's dollar-linked stablecoin.
Anchorage Digital Bank will handle the issuance and custody of USDPT. It marks the first time an Anchorage-issued stablecoin is used for VisaNet settlement. The two companies also plan to review expanding support to other Anchorage-issued stablecoins.
Anchorage highlighted that it combines the processing speed of stablecoins with the safeguards of a regulated bank. Nathan McCauley (네이선 맥컬리), Anchorage co-founder and CEO, said settlement speed alone is not enough to drive institutions to shift on-chain, adding that institutions want a regulated financial institution backing the funds.
Dan Roseberry (댄 로즈베리), Visa vice president in charge of crypto partnerships, said support for USDPT adds a reliable, institutional-grade option that partners can use when settling with Visa.
Visa supports multiple blockchains including Base and Polygon and has expanded its stablecoin settlement business. It introduced a platform that supports stablecoin issuance and transfers for banks and fintech companies, and it also expanded into on-chain lending linked to cards. The partnership is part of moves to integrate stablecoins into existing payment infrastructure.
Anchorage is pursuing a business spanning issuance, custody and settlement, based on a federally chartered crypto bank supervised by the U.S. Office of the Comptroller of the Currency. It currently issues Tether's U.S. regulated stablecoin USAT, Western Union's USDPT and Ethena's USDtb, among others, and all of these tokens are redeemable 1-to-1 for dollars. Through its settlement network Atlas, it also supports off-exchange settlement, collateral management and cross-border transfers.
It recently expanded its business by taking custody of both tokens used for remittances between the United States and Mexico. The Visa partnership will broaden the use of stablecoins from remittances to settlement on a global payment network.
The speed of a stablecoin. The trust of a federally regulated bank. Anchorage Digital and @Visa are partnering to support select Anchorage Digital Bank issued stablecoins as native settlement assets on the Visa network, starting with USDPT, Western Union’s stablecoin. Learn more ↓ https://t.co/C9KNjpNhC7
