Western Union is on the verge of launching a stablecoin strategy aimed at transforming its global payment settlement process. CEO Devin McGranahan announced during the company's first-quarter earnings call that the US dollar stablecoin is nearing completion and is expected to be launched in May.
The digital currency 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 existing interbank settlement system, allowing for real-time transactions, including on weekends and holidays. Additionally, Western Union plans to introduce a Digital Asset Network, enabling users to convert digital assets into local currencies through its retail network.
The company also intends to launch a Stable Card, which will allow customers to hold funds in stablecoins and make purchases through card networks. This move comes as the company faces increasing competition from fintechs and crypto payment firms, with rivals such as MoneyGram and Stripe exploring stablecoin-based solutions for cross-border payments.