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 its US dollar stablecoin is nearing completion and is expected to be launched in May.
The stablecoin, which will operate on the Solana network and be issued in partnership with Anchorage Digital, will initially be used as an alternative to the interbank settlement system currently in use. This move is expected to enable real-time settlements, including on weekends and holidays, and reduce the amount of capital tied up in the system. Additionally, Western Union is developing the Digital Asset Network, allowing crypto wallet companies to offer Western Union as a cash-out option, and plans to introduce a Stable Card later this year, which will enable customers to hold and spend stablecoins through card networks.