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 during the company’s first-quarter earnings call that Western Union’s U.S. 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 would run on Solana (SOL) and be issued to 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 initially launching [USDPT] as an interface to the consumer,” McGranahan said. “We are launching it as an alternative to the SWIFT interbank settlement network that we use today.”
This is important, he said, because Western Union’s business still relies on traditional 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 its partners in real time, including during weekends and holidays, while reducing the capital tied up in the system, he added.
The second element of the company’s strategy is the Digital Asset Network (DAN), which allows crypto wallet companies to offer Western Union as a withdrawal option. Through this network, wallet users will be able to convert their digital assets into local currency through Western Union’s commercial footprint, McGranahan said.
The company said its partner pipeline represents tens of millions of crypto wallets worldwide.
Western Union also plans to launch a Stable Card, expected later this year. It will allow customers to hold funds in stablecoins and spend them 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 utility for everyday spending.
“We plan to begin rolling out this system in dozens of markets, with the first wave planned for the end of this year,” he said.
Western Union’s stablecoin push comes as its core remittance business faces pressure, with rival fintechs and crypto payments companies increasingly using blockchain technology for cross-border payments. MoneyGram, for example, is turning to Circle’s USDC stablecoin, while Stripe has launched its own stablecoin infrastructure with a payments-focused Tempo chain.
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