Western Union (WU) is planning to launch a StableCoin for its 100 million user payment network, becoming the latest traditional financial firm to tap blockchain’s rails to power global transfers.
The company, known for its cross-border payments and cash network to retail customers, plans to launch the US Dollar Payment Token (USDPT) in the first half of next year, according to a Tuesday Press Release.
The token will be issued by Anchorage Digital, a federally regulated digital asset bank, using Solana Network, a public blockchain designed for low-cost, fast settlements.
“This partnership allows us to bring the benefits of the digital dollar to our network and reach nearly every corner of the world,” Western Union CEO Devin McGranahan said in a statement. “With Anchorage Digital as our regulated partner and Solana’s blockchain technology, we are taking a significant step toward faster, better, and more payments for our customers.”
The move comes as StableCoins, a $300 billion class of crypto tokens tied to fiat currencies like the US dollar, are increasingly embedded in global payment channels. StableCoins seek to offer a cheaper, faster alternative to traditional rail, and they are becoming popular with businesses and individuals for remittances and cross-border transactions. Their adoption got a boost in the US with the StableCoin dedicated Genius Act, which brings clear regulation for the sector and issuers.
Western Union is the latest player to integrate StableCoins into its business. Rival firm MoneyGram’s application upgrade is backed by Circle’s USDC StableCoin, the stellar (XML) blockchain and wallet firm crossmint. The firm PayPal’s StableCoin, issued by PAXOS, has grown to $2.7 billion since its launch in 2023. Stripe, meanwhile, is building its own StableCoin infrastructure with a dedicated payment chain.
