Western Union to Launch Dollar-Backed Stablecoin on Solana in 2026

Western Union, a 174-year-old money transfer company, announced Tuesday it will launch its own dollar-backed stablecoin called U.S. Dollar Payment Token (USDPT) on the Solana blockchain.

The announcement came just one day after Western Union reported its third-quarter earnings, revealing that digital wallets now make up over 50% of the company’s digital transactions. With 100 million customers worldwide, Western Union’s entry into stablecoins represents one of the biggest moves yet by a traditional financial company into digital assets.

How the Stablecoin Will Work

USDPT will be issued by Anchorage Digital Bank, the only federally chartered crypto bank in the United States. Each token will be backed one-to-one by U.S. dollars, meaning every USDPT in circulation will have an actual dollar held in reserve.

Western Union CEO Devin McGranahan explained the move as a natural evolution for the company. “We are a long way from the telegraph, but the idea of connecting people through technology remains our core mission,” he said. “Moving into digital assets and stablecoins is simply the next chapter in that journey.”

Source: @solana

The company chose Solana’s blockchain because of its fast transaction speeds and low costs. Solana can process thousands of transactions per second, making it suitable for the high volume of money transfers Western Union handles. The company currently processes over 70 million transactions each quarter across more than 200 countries.

Users will be able to access USDPT through partner cryptocurrency exchanges. They can send, receive, spend, and hold the tokens while benefiting from Western Union’s global compliance systems. The goal is to make international money transfers faster and cheaper while avoiding the risk of local currency value changes.

The Digital Asset Network

Alongside USDPT, Western Union is launching what it calls a Digital Asset Network. This network will connect cryptocurrency wallets with Western Union’s 400,000 physical locations worldwide. The system allows people to convert their digital assets into local cash at Western Union branches, addressing what the company calls “the last mile of the crypto journey.”

This feature could be significant for people who hold cryptocurrency but need access to physical cash. Western Union operates in more than 200 countries and territories, giving it reach in places where traditional banks may have limited presence.

McGranahan noted that owning its own stablecoin allows Western Union to “own the economics linked to stablecoins” rather than paying fees to third-party stablecoin providers. This suggests the company sees stablecoins as a way to increase profit margins on money transfers.

Why Now? The GENIUS Act Changes Everything

Western Union’s timing relates directly to new U.S. regulations. In July 2025, President Donald Trump signed the GENIUS Act into law, creating the first federal regulatory framework for stablecoins.

The law requires stablecoin issuers to hold 100% reserves in safe assets like U.S. dollars or short-term Treasury bonds. Issuers must also make monthly public reports about their reserves and follow anti-money laundering rules. These requirements give companies and customers more confidence that stablecoins are properly backed and regulated.

McGranahan first mentioned Western Union’s stablecoin plans in July 2025, right after the GENIUS Act passed. During the company’s recent earnings call, he confirmed that Western Union has been testing stablecoin solutions in its treasury operations for several months.

The regulatory clarity provided by the GENIUS Act has encouraged multiple traditional financial companies to enter the stablecoin market. PayPal, JP Morgan, and several U.S. states are all working on their own stablecoins. In Europe, nine major banks announced plans in September 2025 to launch a euro stablecoin by 2026.

The Growing Stablecoin Market

The stablecoin market has grown dramatically. The total value of all stablecoins reached nearly $312 billion in 2025, up almost 50% from the start of the year. Standard Chartered bank predicts the market will hit $750 billion by the end of 2026.

Tether’s USDT currently dominates with a market value of $183 billion, while Circle’s USDC has grown to more than $76 billion. These two tokens are now the third and seventh-largest cryptocurrencies by market value.

Western Union processes hundreds of billions of dollars in money transfers annually. Even modest adoption of USDPT by its customer base could bring significant liquidity to the stablecoin market.

The global remittance industry moves approximately $150 billion each year. By launching a stablecoin directly on a public blockchain, Western Union could reshape how this money moves across borders. Traditional wire transfers often cost $15 to $50 and take several days. Stablecoins promise near-instant settlement at much lower costs.

Western Union’s Digital Journey

This isn’t Western Union’s first exploration of blockchain technology. The company began testing Ripple’s blockchain solutions back in 2018 for cross-border transfers. Those early pilots tested whether blockchain could reduce settlement times and working capital needs.

However, those experiments with Ripple never led to full implementation. The company’s executives at the time said the tests were too small to determine if the technology would work at Western Union’s scale.

The difference now is regulatory clarity and Western Union’s decision to issue its own stablecoin rather than depending on another company’s technology. By controlling the entire process through partnership with Anchorage Digital Bank, Western Union can set its own economics and integrate the stablecoin directly into its existing systems.

Recent financial results show Western Union is actively shifting toward digital services. The company reported that digital wallet adoption has surged, with digital payments now accounting for more than half of all digital transactions. This growing digital base provides a ready audience for USDPT when it launches.

The Blockchain Behind It All

Solana has emerged as a popular choice for payment-focused projects because of its technical capabilities. The network can handle high transaction volumes with minimal fees, typically costing fractions of a cent per transaction.

Several major companies have already chosen Solana for payment initiatives. PayPal launched its PYUSD stablecoin on Solana, and other financial technology companies are building payment systems on the network.

At the time of the announcement, Solana’s SOL token was trading around $203, up 6% for the week. The partnership with Western Union adds another major use case for the network and could drive more institutional adoption.

Telegraph to Blockchain: Finishing the Circle

Western Union installed the first transcontinental telegraph line in 1861. The company issued one of the first consumer credit cards in 1914. Now, 175 years after its founding, it’s launching a blockchain-based digital currency.

The move shows how traditional financial companies are adapting to compete with newer cryptocurrency-native competitors. While Western Union’s stock has fallen more than 10% this year, Circle’s stock surged over 300% following its initial public offering. Western Union appears to recognize that stablecoins represent both a competitive threat and an opportunity.

For Western Union’s 100 million customers, USDPT could mean faster transfers, lower fees, and more options for moving money internationally. For the broader cryptocurrency industry, it represents another sign that digital assets are becoming mainstream financial tools rather than experimental technology..