Western Union (WU) is preparing to roll out a stablecoin strategy that could reshape how the 175-year-old money-transfer company settles payments across its global network.
CEO Devin McGranahan said on the company’s first-quarter earnings call that Western Union’s U.S. dollar stablecoin (USDPT) is in the final stages of readiness 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 plans to use the stablecoin first as an alternative to the interbank settlement rails it uses today to move money between the company and its agents.
“We are not originally launching [USDPT] as consumer-facing,” McGranahan said. “We are 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 business days 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 second piece of the company’s strategy is the Digital Asset Network (DAN), which lets crypto wallet companies offer Western Union as a cash-out option. Through that 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 funds in stablecoins and spend through card networks. McGranahan said the card could be useful in inflation-sensitive markets where customers want access to U.S. dollar-denominated value with everyday spending utility.
“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 fintechs and crypto payments firms increasingly using blockchain tech for cross-border payments. MoneyGram, for example, is looking to Circle’s USDC stablecoin, while Stripe launched its own stablecoin infrastructure with a payments-focused chain Tempo.
Read more: DoorDash is bringing stablecoin payments to masses with Stripe-backed blockchain
Leave a Reply
You must be logged in to post a comment.