The opportunity of stablecoin settlement lies in the fact that money no longer needs to wait for banks to open.
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Visa’s Thursday (Nov. 12) stablecoin expansion, through a partnership with Anchorage Digital supporting Western Union’s USDPT token, brings that opportunity into focus.
The arrangement will allow eligible Visa partners to settle obligations using USDPT, a dollar-backed stablecoin issued by Anchorage Digital Bank, with a framework for supporting additional Anchorage-issued tokens.
“As stablecoin payments grow, we’re focused on providing more choice for our partners in how they settle with Visa,” said Dan Roesbery, vice president of global crypto partnerships and GTM at Visa, in a statement.
“Stablecoins have made money move faster, but speed alone won’t bring institutions onchain. They need a regulated institution behind the money,” Nathan McCauley, co-founder and CEO of Anchorage Digital, said in the release. “With Anchorage Digital select issued stablecoins now being supported on the Visa network, institutions get both: the speed of a stablecoin and the safety of a federally regulated bank behind it.”
The collaboration in part of Anchorage Digital’s broader plan to become the settlement bank for stablecoins at institutional scale, according to the release. That means not only issuing stablecoins, but also providing the custody and settlement infrastructure that supports the broader ecosystem.
Visa ’s deal with Anchorage is not its first foray into stablecoins.
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