Western Union’s Dollar-Backed Stablecoin Is Coming to Solana — Here’s the Rollout Plan
Western Union plans to launch a dollar-backed stablecoin on Solana, opening a brand new channel for its international clients to transfer cash with decrease charges and quicker settlement.
The firm, which constructed the first transcontinental telegraph line in 1861, is recasting its community for a digital period the place transactions clear in seconds and run round the clock.
In a statement on Tuesday, Western Union mentioned its US Dollar Payment Token (USDPT) will likely be issued by Anchorage Digital Bank and is scheduled to launch in the first half of 2026.
Western Union mentioned customers will entry the asset by means of associate exchanges, then ship worth internationally with out publicity to native forex swings and banking bottlenecks.
Western Union Bets on Blockchain to Cut Costs in Global Remittances
Executives framed the transfer as a return to the agency’s roots of connecting individuals by means of know-how, solely with new rails.
Devin McGranahan, Western Union’s president and chief govt, indicated that shifting into digital property is the subsequent chapter in a 175-year effort to generate income motion less complicated and extra dependable.
Solana offers the venture high throughput and low charges, that are important in remittances the place cents matter. By selecting a public chain, Western Union goals to shorten the hole between a buyer’s ship instruction and a recipient’s usable funds, whereas bettering transparency for compliance and reconciliation.
If adoption builds, the agency might speed up stablecoin utilization throughout mainstream funds. Stablecoins already command a market valued in the lots of of billions, but a lot of that quantity sits inside buying and selling venues. A Western Union pipeline would put tokenized {dollars} to work in on a regular basis transfers, invoice pay, and cross-border commerce.
Global Payments Firms Race to Shorten Settlement Cycles With On-Chain Dollars
Anchorage Digital Bank will function issuer, bringing a federally chartered framework to custody and reserve administration.
Policy developments have inspired issuers to maintain reserves in money and short-term Treasuries, which helps worth stability and redemption.
Competition is intensifying. PayPal introduced a dollar stablecoin with Paxos in 2023 and folded it into its remittance app. MoneyGram launched a pockets to obtain and maintain USDC. Bank-led networks are testing stablecoin payouts for worldwide transfers, in search of to compress settlement cycles and scale back correspondent banking dependencies.
Wallet Partnerships Will Let Non-Customers Convert Tokens Into Local Currency
Western Union can be constructing a digital asset community with pockets suppliers so non-customers can convert tokens into native forex by means of its retail footprint. That method goals to bridge on-chain worth with cash-out entry in markets the place financial institution penetration is low and money stays dominant.
The firm has been piloting blockchain in its personal treasury to transfer funds quicker and sidestep legacy cut-offs. Today’s cross-border wires can take days and impose working-capital drag. A tokenized greenback that redeems into financial institution cash on demand might streamline liquidity administration throughout time zones.
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