Western Union is on the verge of launching a stablecoin-based strategy to 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 in May.
The digital currency will operate on the Solana platform and be issued in collaboration with Anchorage Digital, a federally chartered crypto bank. Initially, the stablecoin will be used as an alternative to the existing interbank settlement system, enabling real-time transactions, including weekends and holidays, and reducing the need for capital to be tied up in the system. Additionally, Western Union is developing the Digital Asset Network, which will allow crypto wallet companies to offer Western Union as a cash-out option, enabling users to convert digital assets into local currency.
The company also plans to introduce a Stable Card, allowing customers to hold funds in stablecoins and make transactions through card networks, with an expected launch later this year.