Money transfer giant Western Union has launched its USDPT stablecoin on the Solana blockchain on Monday. The platform has joined forces with Anchorage Digital Bank and Fireblocks to support the stablecoin that will now compete with giants like USDT and USDC in the international market.
Pegged against the U.S. dollar, the USDPT stablecoin will be issued by Anchorage Digital Bank N.A. New York-headquartered Fireblocks has been selected to provide the required digital infrastructure to support the USDPT.
The stablecoin is being integrated directly into Western Union’s core financial rails. It will essentially allow customers to select the stablecoin as a settlement option, enabling near-instant global remittances through the Solana blockchain.
“We’re creating a more efficient settlement layer that supports partners, agents and future consumer use cases,” Devin McGranahan, Western Union’s President and CEO said commenting on the development.
The move marks a pivotal milestone in the history of Western Union, that was originally launched as a printing telegraph company back in 1851. The company entered the money transfer business in around 1861 — and is now making efforts to stay relevant in the face of mammoth technological advancements including AI and crypto.
The stablecoin is being advertised as a faster and more efficient option for internal treasury settlements and a liquidity rail for Western Union partners.
Western Union has decided to first roll out the USDPT stablecoin in Mexico, Argentina, Colombia, and the Philippines. All of these are markets that see high remittances from diaspora working abroad. The launch of this token to additional markets is scheduled for later this year, the timeline of which remains unclear as for now.
“USDPT demonstrates what’s possible when scalable blockchain infrastructure is paired with a regulated framework,” said Sheraz Shere, GM Payments & Commerce, Solana Foundation. “Building on Solana allows Western Union and Anchorage Digital to support high-volume, real-time payment activity in a way that traditional systems cannot.”
Western Union has now joined other payments giants like PayPal to step into the $317 billion stablecoin arena.
With Solana, Western Union will be clocking a notable reduction its own operational costs and idle capital requirements that makes it maintain large balances across global banks to facilitate instant fiat cash outs around the world.
The platform is expected to keep churning profits from currency exchange spreads, service fees, and cash-out commissions at its physical branches — giving its legacy revenue model a tech-driven revamp.
“USDPT represents a meaningful step forward in how we move money globally,” Clarke said. “By introducing a digital dollar into our network, we can operate in a more efficient, capital-light way.”
An official X handle for the USDPT stablecoin has been created under the handle @USDPT_ which has, as of Monday, amassed 400 followers.
