Western Union to launch Solana-based USD stablecoin next month

Western Union plans to launch USDPT, a U.S. dollar stablecoin built on the Solana blockchain, next month, executives said on the company’s April 24 earnings call. The stablecoin will be used initially as an onchain settlement alternative to the SWIFT network for payments with Western Union’s agent network. The company intends to introduce USDPT in select countries with key agent partners to speed settlement and to keep processing running during traditional banking holidays.

The company is also launching the Digital Asset Network, or DAN, to connect cryptocurrency wallets with its retail and agent footprint. According to the company, the first DAN partner will go live this week, enabling wallet users to convert digital assets into local currency through Western Union agents.

Through DAN, millions of wallet users will be able to move from digital assets into local currency using Western Union's retail network with an experience that is simple for customers and familiar for our agents, CEO Devin McGranahan said on the call.

Western Union plans a USD Stable Card later this year to let consumers hold value in stablecoins and spend globally. The card will be offered across dozens of markets and is aimed at customers in inflation-sensitive countries who seek dollar-denominated value with immediate spending utility.

McGranahan described USDPT as the foundation of the company’s digital asset strategy and added, “It is no longer a question of if Western Union will be active in digital assets; it is now how fast we can scale.” The company has positioned USDPT as a settlement tool rather than a consumer-facing cryptocurrency at launch, while the Stable Card will extend dollar-pegged digital assets into retail spending over time.

Western Union reported adjusted revenue of $983 million for the first quarter, down 1% year over year and marking a 400-basis-point improvement from the fourth quarter. Shares of NYSE-listed WU closed at $8.90, down 4.6% the Friday after the call.

The company said the Solana blockchain was chosen to support faster onchain transfers for agent payments and for retail conversions.