Western Union has announced plans to launch its dollar-backed stablecoin called USDPT (US Dollar Payment Token) ON Solana. The move has been hailed as the company’s most significant push into the crypto industry.
Back in July, Devin McGranahan, CEO of Western Union, revealed that the platform was interested in creating its stablecoin. In addition to its plans to launch the USDPT stablecoin, Western Union is also looking into the likelihood of launching its digital asset network to bridge the digital and fiat worlds and enable real-world utility for digital assets.
Western Union set to launch USDPT
The stablecoin is expected to be issued by Anchorage Digital Bank and has been predicted to become a way for customers, partners, and agents to move money worldwide as well as support the company’s treasury goals. The plan is set to merge together the global digital footprint of Western Union, the high-performance of the Solana blockchain, and the regulated stablecoin issuance and digital assets custody platform that Anchorage Digital offers.
“We are committed to leveraging emerging technologies to empower our customers and communities,” said Devin McGranahan, President and CEO of Western Union. “As we evolve into the digital assets space, Western Union’s USDPT will allow us to own the economics linked to stablecoins.” He also talked about their digital asset network, calling it a solution for the “last mile of the crypto journey,” which will involve partnerships with wallets and wallet providers.
This new development is expected to give customers access to cash off-ramps for digital assets by leveraging the company’s global network. “Our Digital Asset Network and USDPT will be an enabler in achieving our mission to make financial services accessible to people everywhere,” McGranahan said. Western Union’s announcement has once again turned the spotlight on stablecoins as they are increasingly integrated into global payment channels.
Stablecoins are already popular among businesses and individuals for remittances and cross-border transactions, as they can move across borders rapidly while incurring fewer fees. The fiat-pegged token concept has grown steadily in the United States since the stablecoin-focused GENIUS Act was passed, providing regulatory clarity for the sector and issuers. As such, it is no surprise that Western Union is not the first player to incorporate stablecoins into its business.
Meanwhile, rival firm MoneyGram is not slacking in the sector. The platform already has an upgraded application that is underpinned by Circle’s USDC stablecoin, the Stellar (XML) blockchain, and wallet firm Crossmint. There is also PayPal’s stablecoin, issued by Paxos, which has grown to $2.7 billion since it was launched in 2023. Stripe is further behind as it is still putting together its own stablecoin infrastructure with a payments-focused chain.
