Western Union is on the verge of launching a stablecoin strategy that could revolutionize its global payment settlement process. CEO Devin McGranahan announced during the company's first-quarter earnings call that the US dollar stablecoin, USDPT, is nearing its launch and is expected to be available next month.
The stablecoin will operate on the Solana network 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, allowing for real-time transactions, including on weekends and holidays, and reducing the need for capital to be tied up in the system. The company is also developing the Digital Asset Network, which will enable users to convert digital assets into local currency through Western Union's retail network.
Additionally, a Stable Card is planned for launch later this year, allowing customers to hold funds in stablecoins and make transactions through card networks. This move is seen as a response to increasing competition from fintechs and crypto payments firms that are leveraging blockchain technology for cross-border payments.