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 its final stages of development and is expected to be launched in May.
The digital dollar will be built on the Solana platform and 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 for transactions between the company and its agents.
According to McGranahan, the stablecoin will allow for real-time settlement with partners, including on weekends and holidays, while reducing the amount of capital tied up in the system. Additionally, the company is developing the Digital Asset Network, which will enable crypto wallet companies to offer Western Union as a cash-out option, allowing users to convert digital assets into local currency.
A Stable Card is also in the works, expected to launch later this year, which will enable customers to hold funds in stablecoins and make purchases through card networks. The introduction of the stablecoin comes as Western Union's core remittance business faces increasing competition from fintechs and crypto payments firms utilizing blockchain technology for cross-border payments.