Western Union is on the verge of launching a stablecoin strategy aimed at revolutionizing 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 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 existing interbank settlement system, enabling the company to settle transactions with partners in real-time, including weekends and holidays, while reducing capital tied up in the system.
Additionally, Western Union plans to introduce the Digital Asset Network, allowing crypto wallet companies to offer Western Union as a cash-out option, and a Stable Card, which will enable customers to hold funds in stablecoins and make purchases through card networks.