Western Union to Launch USDPT Stablecoin on Solana in 2026
Caroline Bishop Oct 29, 2025 17:10
Western Union is set to introduce a dollar-backed stablecoin, USDPT, on Solana in 2026, aiming to enhance global remittances with faster and cost-effective transactions.
Western Union is gearing up to launch its dollar-backed stablecoin, known as the US Dollar Payment Token (USDPT), on the Solana blockchain in 2026. This initiative is aimed at revolutionizing cross-border payments by providing a faster and more cost-effective solution, according to CryptoNews.
The move marks a significant shift for the company, which has a long history of pioneering communication technologies, such as the first transcontinental telegraph line in 1861. By leveraging blockchain technology, Western Union aims to facilitate transactions that clear in seconds, offering a modern alternative to traditional banking systems.
In a recent statement, Western Union announced that Anchorage Digital Bank will issue the USDPT, with the launch anticipated in the first half of 2026. Users will be able to access this stablecoin through partner exchanges, enabling international value transfers without being affected by local currency fluctuations and banking delays.
Western Union Bets on Blockchain to Cut Costs in Global Remittances
The decision to adopt blockchain technology is seen as a return to Western Union's roots of connecting people through innovative technology. Devin McGranahan, the company's president and CEO, emphasized that entering the digital assets space is a continuation of their 175-year mission to simplify and enhance money movement.
Solana was chosen for its high throughput and low transaction fees, which are crucial for remittance services. By settling transactions on a public blockchain, Western Union aims to reduce the time between sending and receiving funds while improving transparency for compliance and reconciliation.
If successful, this initiative could accelerate the mainstream adoption of stablecoins for everyday financial activities such as bill payments and cross-border commerce, moving beyond their current use primarily within trading platforms.
Global Payments Firms Race to Shorten Settlement Cycles With On-Chain Dollars
Anchorage Digital Bank will not only issue the USDPT but will also ensure its compliance with federal regulations regarding custody and reserve management. This aligns with recent policy developments encouraging stablecoin issuers to back their tokens with cash and short-term Treasuries, ensuring price stability and redemption capabilities.
The global payments landscape is becoming increasingly competitive, with firms like PayPal and MoneyGram exploring similar stablecoin solutions. PayPal, in partnership with Paxos, launched its own dollar stablecoin in 2023, while MoneyGram has introduced a wallet to facilitate USDC transactions. These efforts aim to expedite settlement cycles and minimize reliance on traditional banking frameworks.
Wallet Partnerships Will Let Non-Customers Convert Tokens Into Local Currency
Western Union is also developing partnerships with wallet providers to allow non-customers to convert stablecoins into local currency, leveraging its extensive retail network. This strategy aims to integrate on-chain value with cash-out capabilities in regions where banking infrastructure is limited, and cash remains prevalent.
By piloting blockchain technology within its treasury operations, Western Union seeks to enhance liquidity management and reduce the delays associated with conventional cross-border wire transfers. A tokenized dollar that can be converted into bank money on demand could significantly streamline financial operations across different time zones.
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