Anchorage Digital stablecoins can now be used to settle VisaNet payments

Visa is enabling a new route for settlement on its network, allowing certain companies to use a dollar-pegged stablecoin tied to Western Union for obligations processed on VisaNet. The update is a milestone in the effort to move parts of payment flows from traditional banking rails to blockchain-based settlement, while keeping Visa’s core transaction processing intact.

According to reporting on the change, Visa and eligible companies can use Western Union’s USDPT stablecoin. USDPT is described as being issued and custodied by Anchorage Digital Bank, a federally chartered institution. In this setup, the stablecoin is intended to be used as the settlement instrument for VisaNet obligations, rather than as a consumer-facing currency.

Anchorage Digital’s role in the arrangement is centered on custody and issuance for USDPT through Anchorage Digital Bank. That matters because stablecoins typically require some form of reserve backing and an operator that can manage custody and redemption. The bank structure is designed to bring stablecoin operations under a regulated umbrella, a key factor for traditional payments companies exploring token-based settlement.

For Visa, the practical significance is that it can allow participants to settle net positions or obligations through a tokenized asset, potentially smoothing liquidity timing and reducing reliance on correspondent banking for some settlement legs. Visa’s network primarily moves authorization and transaction messages, but settlement processes determine how funds are ultimately transferred. Bringing a regulated stablecoin into that settlement layer is one more example of payments firms experimenting with token rails.

The stablecoin instrument referenced here, USDPT, is associated with Western Union as the issuer. Stablecoins are typically built to track the value of a reference asset, in this case the U.S. dollar, and are meant to reduce volatility that can make token settlement harder for mainstream commercial payments. Using a dollar-pegged token can also help counterparties meet accounting and risk expectations compared with more volatile crypto assets.

Neither Visa nor its counterparties, in the information available from the reporting, disclosed the specific list of eligible Visa participants, the operational process for how settlement occurs on the Visa network, or whether the stablecoin is being used for all settlement flows or only certain corridors or business lines. The reporting also did not specify timelines, contract terms, or any geographic scope for the rollout.

Industry context suggests Visa is testing stablecoin settlement as regulators and market participants push for more interoperability between traditional payments infrastructure and tokenized financial systems. For network operators, the challenge is making token-based settlement work reliably with existing risk controls, reconciliation processes, and compliance frameworks. For banks and stablecoin issuers, the challenge is meeting reserve, custody, and redemption standards while integrating with high-volume payment settlement workflows.

What to watch next is whether Visa expands eligibility beyond early partners and whether the settlement path supports more transaction types, higher volumes, or additional settlement assets. Market participants will also likely look for more detail on operational mechanics, including how disputes, chargebacks, and finality are handled when settlement involves a tokenized instrument, and how redemption and reserve reporting are managed over time.