Western Union is set to launch a stablecoin strategy aimed at transforming its global payment settlement process. According to CEO Devin McGranahan, the company's US dollar stablecoin is nearing completion and is expected to be launched next month. The stablecoin will operate on the Solana platform and will be issued in partnership with Anchorage Digital, a federally chartered crypto bank.
Initially, the stablecoin will be used as an alternative to the interbank settlement system currently in use, allowing for real-time settlement with partners, including on weekends and holidays, while reducing the need for capital to be tied up in the system. Additionally, the company is developing the Digital Asset Network, which will enable crypto wallet companies to offer Western Union as a cash-out option, allowing users to convert digital assets into local currency. A Stable Card is also in the works, expected to launch later this year, which will enable customers to hold funds in stablecoins and make purchases through card networks. This move comes as Western Union's core remittance business faces increasing competition from fintechs and crypto payments firms leveraging blockchain technology for cross-border payments.