Western Union (WU) is preparing to roll out a stablecoin strategy that could reshape how the 175-year-old money transfer company processes payments across its global network.
CEO Devin McGranahan said on the company’s first quarter earnings call that Western Union’s US dollar stablecoin (USDPT) is in the final stages of clarity and is expected to launch next month. The firm announced in October that the digital dollar will run on Solana (SOL) and will be issued with federally chartered crypto bank Anchorage Digital.
Western Union first plans to use the stablecoin as an alternative to the interbank settlement rails it uses today to move money between the company and its agents.
“We don’t launch initially [USDPT] as consumer-facing,” McGranahan said. “We’re launching it as an alternative to the interbank SWIFT settlement network that we use today.”
That matters, he said, because Western Union’s business still depends on legacy banking systems that settle only on weekdays and can take two or three days in some markets. Stablecoins could allow the company to settle with partners in real time, including over weekends and holidays, while reducing capital tied up in the system, he added.
The other part of the company’s strategy is the Digital Asset Network (DAN), which lets crypto wallet companies offer Western Union as a payout option. Through this network, wallet users will be able to convert digital assets into local currency through Western Union’s retail footprint, McGranahan said.
The company said its partner pipeline represents tens of millions of crypto wallets globally.
Western Union also plans to launch a stable card, expected later this year. It will let customers hold money in stablecoins and spend via card network. McGranahan said the card could be useful in inflation-sensitive markets where customers want access to US dollar-denominated values with everyday use.
“We expect to begin rolling this out across dozens of markets with an initial wave targeted for later this year,” he said.
Western Union’s stablecoin push comes as its core remittance business faces pressure, with rival fintech and crypto-payments firms increasingly using blockchain technology for cross-border payments. MoneyGram, for example, is pursuing Circle’s USDC stablecoin, while Stripe launched its own stablecoin infrastructure with payments-focused chain Tempo.
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