Western Union (WU) is preparing to launch a stablecoin strategy that could reshape how the 175-year-old money transfer company settles payments across its global network.
Western Union’s U.S. dollar stablecoin (USDPT) is in the final stages of preparation and is expected to launch next month, CEO Devin McGranahan said during the company’s first-quarter earnings call. The company announced in October that the digital dollar will run on Solana (SOL) and will be issued by federally chartered crypto bank Anchorage Digital.
Western Union plans to first use stablecoins as an alternative to the interbank settlement rails currently used to move funds between companies and their agents.
“We didn’t initially launch [USDPT] “We launched it as a replacement for the inter-bank SWIFT settlement network we currently use,” McGranahan said.
That’s important, he said, because Western Union’s business still relies on traditional banking systems, which settle on business days only, which can take two to three days in some markets. Stablecoins could allow companies to settle with partners in real time, including weekends and holidays, while reducing the capital tied up in the system, he added.
The second part of the company’s strategy is the Digital Asset Network (DAN), which allows crypto wallet companies to offer Western Union as a cash withdrawal option. McGranahan said that through the network, wallet users will be able to convert digital assets into local currencies through Western Union’s retail operations.
The company said its partner pipeline represents tens of millions of crypto wallets around the world.
Western Union also plans to launch a stable card, which is expected to be launched later this year. It will allow customers to hold stablecoin funds and spend them through the card network. McGranahan said the card could be useful in inflation-sensitive markets where customers want dollar-denominated value for everyday spending utility.
“We expect to begin rollout in dozens of markets, with the first wave targeting later this year,” he said.
Western Union’s stablecoin launch comes as its core remittance business comes under pressure as rival fintech and crypto payment companies increasingly use blockchain technology for cross-border payments. MoneyGram, for example, is pursuing Circle’s USDC stablecoin, while Stripe has launched its own stablecoin infrastructure, including payments-focused chain Tempo.
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