TLDR
- Western Union expects to launch USDPT next month.
- USDPT will run on Solana and be backed by U.S. dollars.
- The stablecoin will first support agent settlements.
- DAN will link crypto wallets with Western Union agents.
- A USD Stable Card is planned across dozens of markets.
Western Union is preparing to launch USDPT next month. The stablecoin will run on Solana and will be backed by U.S. dollars. The company plans to use it for global payment settlement with agents.
CEO and President Devin McGranahan shared the update during the company’s first-quarter earnings call on April 24. He said the project is in its final stage of preparation.
USDPT to Support Agent Settlements
Western Union plans to use USDPT as a settlement tool. The stablecoin is not being launched first as a consumer product. It will support payments between Western Union and selected agent partners.
McGranahan said USDPT will offer another route beside SWIFT. The company now uses traditional bank channels for many settlements. Onchain settlement may allow faster processing, even during banking holidays.
“”It is no longer a question of if Western Union will be active in digital assets; it is now how fast we can scale,”” McGranahan said. He added that USDPT is the base of the company’s digital asset plan.
The first rollout will begin in select countries. Western Union will work with key agent partners during the launch. The company has not named all markets for the first phase.
Digital Asset Network to Link Wallets and Agents
Western Union also plans to launch its Digital Asset Network, known as DAN. The network will connect crypto wallets with its retail and agent system. It will use USDPT and other digital assets.
Through DAN, wallet users may convert digital assets into local currency. Western Union said the process should feel simple for customers. It also aims to keep the process familiar for agents.
“”Through DAN, millions of wallet users will be able to move from digital assets into local currency,”” McGranahan said. He said the service will use Western Union’s retail network.
The first DAN partner is expected to go live this week. Western Union did not share the partner’s name in the call. The network will form part of its wider payment plan.
Stable Card Planned for Global Consumers
Western Union also plans to launch a USD Stable Card later this year. The card will allow users to hold value in stablecoins. It will also support spending across many markets.
The company said the card will be available in dozens of markets. It is designed for global consumers who want dollar-based value. The service may be useful in markets with inflation pressure.
“”The Stable Card is particularly compelling in inflation-sensitive markets,”” McGranahan said. He added that customers want dollar value with direct use.
Western Union reported adjusted revenue of $983 million for the first quarter. Revenue was down 1% from the same period last year. Its NYSE-listed stock, WU, closed at $8.90 after falling 4.6% last Friday.
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