TLDR
- Western Union plans to launch a dollar-backed stablecoin called USDPT in the first half of 2026
- The stablecoin will be built on the Solana blockchain and issued by Anchorage Digital Bank
- Western Union has 100 million customers who will be able to access the stablecoin through partner exchanges
- The move follows competitors like PayPal and MoneyGram who already integrated stablecoins into their services
- The GENIUS Act signed by President Trump this summer created a regulatory framework that encouraged companies to launch stablecoins
Western Union announced plans to launch its own dollar-backed stablecoin for its payment network. The company, which built the first transcontinental telegraph line in 1861, is entering the digital asset space with the U.S. Dollar Payment Token, or USDPT.
The stablecoin will be built on the Solana blockchain and issued by Anchorage Digital Bank. Western Union expects to launch the token in the first half of 2026. The company’s 100 million customers will be able to access USDPT through Western Union’s partner exchanges.
Western Union CEO Devin McGranahan said the move represents the next chapter in the company’s 175-year history of connecting people through technology. The stablecoin aims to let customers send money internationally while avoiding local currency fluctuations and risks. Customers might be able to lower costs and settle transactions faster using the digital token.
Anchorage Digital is the only crypto firm in the United States with a federal bank charter. The company will also issue Tether’s planned new U.S.-specific stablecoin. Western Union transfers hundreds of billions of dollars annually and could accelerate the growth of stablecoins, which have a combined market cap of more than $300 billion.
Regulatory Framework Drives Adoption
The GENIUS Act signed into law by President Trump this summer created a regulatory framework for stablecoins. The bill requires issuers to back their tokens with reserves of cash, short-term Treasurys and similarly safe assets. This legislation sparked increased interest in dollar-pegged cryptocurrencies from startups, banks and major retailers like Amazon.com and Walmart.
Western Union previously avoided crypto due to concerns about volatility and unclear regulations. The company changed its stance after the passage of the GENIUS Act provided regulatory clarity. The rise of stablecoins, which maintain their value through a peg to the dollar, also addressed volatility concerns.
Western Union is creating a digital asset network of crypto wallet providers. This network will let non-Western Union customers convert digital assets into local currencies at more than 400,000 retail locations worldwide. The company has been testing stablecoins and blockchain technology in its treasury operations to move money faster.
Western Union currently uses correspondent banks to move money across borders. This process can take several days to complete. The company wants to reduce its dependency on these legacy banking systems.
Competition Heats Up
PayPal launched its dollar-backed stablecoin with Paxos Trust in 2023. The company has incorporated the stablecoin into its remittance service, Xoom. PayPal’s stablecoin has grown to $2.7 billion since launch.
MoneyGram unveiled a wallet app in September. The app allows users to receive and hold USD Coin, the second-largest stablecoin issued by Circle Internet Group. MoneyGram’s upgraded application uses Circle’s USDC stablecoin and the Stellar blockchain.
Zelle, owned by the country’s largest banks, announced plans last week to allow international payments using stablecoins. Major banks have been exploring ways to issue their own stablecoins. These financial institutions are competing with traditional remittance service providers.
Western Union’s stock has fallen more than 10% this year. Stablecoin providers have promised cheaper and faster cross-border money transfers. Circle Internet Group has surged more than 300% since its public debut in June.
Western Union reported on its third-quarter earnings call that it was actively testing blockchain technology. The company aims to improve transaction speeds and reduce costs for customers sending money internationally through the new stablecoin service when it becomes available next year.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
