Western Union is on the verge of launching a stablecoin strategy that could significantly alter the way the company processes payments worldwide. During the company's first-quarter earnings call, CEO Devin McGranahan announced that the US dollar stablecoin is nearing its final stages of development and is expected to be launched in May.
The digital dollar will operate on the Solana network and will be issued in collaboration with the federally chartered crypto bank Anchorage Digital. Initially, the stablecoin will be used as an alternative to the existing interbank settlement system, enabling the company to process transactions in real-time, including on weekends and holidays, while reducing the amount of capital tied up in the system. The company also plans to introduce a Digital Asset Network, which will allow cryptocurrency wallet companies to offer Western Union as a cash-out option, and a Stable Card, expected to be launched later this year, which will enable customers to hold funds in stablecoins and make purchases through card networks.