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 the US dollar stablecoin is nearing completion and is expected to launch in May.
The stablecoin 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 interbank settlement system currently in use, allowing for real-time settlements, including on weekends and holidays, and reducing the need for capital to be 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, which will enable customers to hold funds in stablecoins and make purchases through card networks. The company's stablecoin initiative comes as its core remittance business faces increasing competition from fintechs and crypto payments firms leveraging blockchain technology for cross-border payments.