Western Union (WU) is planning to launch a stablecoin for its 100 million-user payments network, becoming the latest traditional finance firm to use blockchain rails to power global transfers.
The company, known for its cross-border payments and cash network between retail customers, plans to launch a 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 and Solana’s blockchain technology as our regulated partner, we are taking a meaningful step toward faster, more efficient, and more inclusive payments for our customers.”
The move comes as stablecoins, a $300 billion crypto token class pegged to fiat currencies like the US dollar, are increasingly being embedded in global payment channels. Stablecoins seek to provide a cheaper, faster alternative to traditional rails, and they are becoming popular among businesses and individuals for remittances and cross-border transactions. Their adoption in the US was boosted with the stablecoin-focused Genius Act, which brought clearer regulation to the sector and issuers.
Western Union is the latest player to incorporate stablecoins into its business. Rival firm MoneyGram’s advanced application is underpinned by Circle’s USDC stablecoin, the Stellar (XML) blockchain and wallet firm Crossmint. Payments firm PayPal’s stablecoin, issued by Paxos, has raised $2.7 billion since its launch in 2023. Meanwhile, Stripe is building its own stablecoin infrastructure with a payments-focused chain.