- Cross-border payments giant Western Union is bullish about the adoption of its stablecoin and stable card when they launch next year.
- The company’s EVP highlighted that the institution’s distribution points in over 200 countries will significantly drive demand for the products.
Western Union discussed its roadmap heading to 2026 at the UBS Global Technology and AI Conference 2025 in Scottsdale, Arizona, on December 2. The publicly traded company mainly highlighted how it can enhance its business through leveraging digital currencies.
The global financial services company admitted that hundreds of millions of dollars are siloed in its traditional system, hindering its ability to deliver real-time payments. Matthew Cagwin, Executive Vice President and Chief Financial Officer of Western Union, claimed that the business’s daily transaction volume averages $500 million. Hence, it is considering using stablecoins to speed up payment processes and make them more efficient.
The Solana-Powered USDTP Stablecoin
The revelation comes hot on the heels of Western Union’s confirmation that it’s developing a US dollar-backed stablecoin called the US Dollar Payment Token (USDPT) to modernize its cross-border payment capabilities using blockchain technology. The Solana (SOL) blockchain will underpin the digital asset, and the company expects to launch it in the first half of 2026.
Cagwin also stated that Western Union has partnered with four network providers to service the on-ramp and off-ramp of the USDPT. Moreover, the Western Union senior executive is confident that the USDPT will attract significant demand. He emphasized that the company’s strategic distribution points in over 200 countries will reinforce its usage.
Western Union’s Stable Card
Complementing Western Union’s new stablecoin will be a stable card. Cagwin explained that the product aims to mitigate the effects of inflation on remittances.
Citing the company’s experience in Argentina, the EVP recalled that they had to raise the pay of four of their employees there to cope with annual inflation that ranged from 250% to 300%. That meant the US dollar, when converted to the Argentine peso, was losing nearly half its value there each month.
“Imagine a world where your family in the US is sending you $500 home, but by the time you spend it in the next month, it’s only worth $300,” said Cagwin.
Western Union plans to mitigate the impact of hyperinflation through the new stable card. It will effectively serve as an increment to its existing prepaid card offering. However, the twist is that it will allow holders to maintain their balance in a US dollar-pegged stablecoin, the USDPT.
Furthermore, Cagwin noted that remittances account for a substantial share of the gross domestic product (GDP) of most countries where Western Union operates. With that, he believes the payments giant’s stablecoin and stable card will see considerable adoption.
“And we wanted to be able to control the economics, control the compliance, and control the overall distribution, and we think we can grow that beyond that,” the EVP added.
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