Western Union Introduces USDPT Stablecoin on Solana

Western Union, one of the world’s largest consumer remittance companies, will introduce a dollar-backed stablecoin in early 2026. This move marks one of the most aggressive blockchain shifts undertaken by a legacy remittance business.

The initiative arrives as payment providers race to integrate stablecoins into existing rails. Visa, Stripe, and PayPal already support USDC or PYUSD across multiple blockchains, but Western Union is building a branded asset and a dedicated conversion network.

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According to the press release, the stablecoin, USDPT, will run on Solana and be issued by Anchorage Digital Bank, a federally regulated crypto custodian. Western Union says users can send, receive, hold, and redeem USDPT through partner exchanges and its upcoming Digital Asset Network.

“We are making digital assets usable for everyday remittance customers,” said CEO Devin McGranahan. He said the token will benefit from Western Union’s compliance stack and global payout infrastructure.

Solana’s low fees and high throughput influenced Western Union’s technical choice. The network settles transactions in seconds and supports sub-cent transfers, making small remittances economically viable. That performance is central to Western Union’s strategy, because high fees and slow settlement remain the industry’s most significant pain points.

The digital asset network will allow users to convert USDPT or other supported tokens into local currency. More than 600,000 Western Union agents will participate, covering over 200 countries and territories. Customers can send tokens from a wallet and collect cash at a retail location, without needing a bank account.

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Other payment companies are also expanding crypto-to-cash services. MoneyGram has pursued a similar path. In 2025, the company launched a next-generation mobile app in Colombia that uses USDC on the Stellar network. It allows users to receive stablecoin payments and cash them out through MoneyGram’s retail partners. PayPal launched PYUSD in 2023 and expanded off-ramp coverage through licensed partners in the United States and Europe.

Analysts say Western Union’s model could shift stablecoins toward mass-market usage. In emerging markets, cash remains dominant, so a crypto off-ramp with physical locations could provide a practical bridge for unbanked users. Industry researchers note that Western Union’s presence in rural areas and secondary cities may offer an advantage over digital-only rivals.

The company will capture revenue from issuance, exchange spreads, transaction fees, and agent commissions. Visa and Stripe, by contrast, provide neutral infrastructure and do not issue tokens or earn float on reserves. Western Union expects pilot access to begin in the first half of 2026.

The strategy also carries risk. Customers must learn to use wallets, understand stablecoins, and trust a new product. Western Union must also meet regulations that differ across markets, including Europe’s MiCA regime and restrictions in Asia.

The company’s stock rose 6.5% on the announcement day, reflecting investor optimism about new digital revenue streams. However, shares remain down roughly 10.4% year-to-date, underscoring the company’s longer-term growth challenges.

Solana (SOL) traded at about $194, down roughly 1.9% from the previous day. The move aligned with broader market volatility across major cryptocurrencies, including Bitcoin and Ethereum.