Western Union (WU) is preparing to implement a stablecoin strategy that could reshape the way 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 US dollar stablecoin (USDPT) is in the final stages of preparation and is expected to launch next month. The company announced in October that the digital dollar will run on Solana (SOL) and be issued at the federally chartered Anchorage Digital cryptobank.
Western Union plans to use the stablecoin first as an alternative to the interbank settlement avenues it uses today to move money between the company and its agents.
“Originally we are not going to launch [USDPT] as consumer-oriented,” McGranahan said. “We’re launching it as an alternative to the SWIFT interbank settlement network we use today.”
That’s important, he said, because Western Union’s business still relies 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 reach deals with partners in real time, even during 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 allows crypto wallet companies to offer Western Union as a cash withdrawal 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 portfolio represents tens of millions of crypto wallets around the world.
Western Union also plans to launch a Stable Card, expected later this year. It will allow customers to hold funds in stablecoins and spend across card networks. McGranahan said the card could be useful in inflation-sensitive markets where customers want access to U.S. dollar-denominated value with utility for everyday spending.
“We hope to begin rolling this out to dozens of markets with an initial wave planned for later this year,” he said.
Western Union’s stablecoin push comes as its core remittance business faces pressure as rival fintechs and crypto payments companies increasingly use blockchain technology for cross-border payments. MoneyGram, for example, is eyeing Circle’s USDC stablecoin, while Stripe launched its own stablecoin infrastructure with a payments-focused Tempo chain.
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