Payment giant Western Union plans to launch the USD stablecoin USDP, based on the Solana chain to compete with PayPal.

The global payment network giant Western Union, with a history of 175 years, has announced plans to launch a dollar stablecoin named U.S. Dollar Payment Token (USDPT). This stablecoin will be built on the Solana Blockchain and issued by Anchorage Digital Bank, with an expected launch in the first half of 2026. This move aims to enable its 100 million users to make international remittances, free from local currency fluctuations and risks, achieving lower costs and faster transaction settlements. After President Trump signed the GENIUS Act this summer to provide regulatory clarity, Western Union's entry marks a new developmental stage for the stablecoin market, and its massive scale will pose a strong challenge to competitors like MoneyGram, PayPal, and the traditional banking industry.

Western Union Digital Transformation: Stablecoins Become the New Engine for Cross-Border Remittances

Western Union, the pioneer of the payment network that established the first transcontinental telegraph line back in 1861, is making significant strides into the digital age by launching the stablecoin USDPT. The company's CEO Devin McGranahan stated that the shift towards digital assets and stablecoins is the next chapter in its long journey of “connecting people” in its 175-year history. By using stablecoins for global remittances, users can expect to lower costs and accelerate transaction settlement speeds.

USDPT is set to launch in the first half of 2026, and users will be able to access the token through Western Union's partner exchanges. If widely adopted, Western Union's annual transfer volume of hundreds of billions of dollars will greatly drive the growth of the stablecoin market, which has a total market value exceeding 300 billion dollars.

The cornerstone of technology and compliance: Solana collaborates with Anchorage Digital Bank

Western Union has chosen the Solana Blockchain as the issuance platform for its stablecoin USDP, valuing its high processing speed and low cost features.

• Issuer and Technology: USDPT will be issued by Anchorage Digital Bank, the only crypto company in the United States with a federal banking license. It is worth noting that Anchorage Digital is also the issuer for the stablecoin specifically targeted at the United States that Tether plans to launch.
• Regulatory Clarity: Western Union has previously maintained a cautious attitude towards crypto assets, primarily concerned about the fluctuation of digital assets and the lack of clear rules. Stablecoins address the volatility issue by pegging to the USD, coupled with President Trump signing the GENIUS Act this summer, which established a regulatory framework (requiring issuers to back their tokens with safe assets such as cash and short-term government bonds), making cryptocurrencies highly attractive to Western Union.

Market Competition and New Digital Asset Networks

Western Union's stablecoin strategy unfolds against the backdrop of significant progress made by competitors. Rivals like MoneyGram and PayPal have integrated stablecoins into their core businesses; for example, PayPal launched a USD-backed stablecoin in 2023 in partnership with Paxos Trust and incorporated it into its remittance service Xoom. MoneyGram has also introduced a wallet application that allows users to receive and hold USD Coin. Additionally, traditional banking payment products represented by Zelle are planning to allow users to use stablecoins for international payments.

Western Union also announced the launch of a “Digital Asset Network (Digital Asset Network)” aimed at providing “real-world utility” for digital assets. The network will consist of cryptocurrency wallet providers, allowing non-Western Union customers to exchange digital assets for local fiat currency at its global network of over 400,000 retail outlets.

• Stock Price Comparison: Although Western Union's stock price has fallen more than 10% this year, facing competitive pressure from cheaper and faster stablecoin providers, stablecoin issuer Circle Internet Group has surged over 300% since going public in June last year.
• Market Outlook: By 2025, the stablecoin market size is expected to approach USD 312 billion, with a year-on-year growth of nearly 50%. Standard Chartered Bank in the UK predicts that by the end of 2026, the industry's value will reach USD 750 billion, demonstrating the increasing interest of financial services giants in this asset.

Conclusion

Western Union's decision to launch USDPT is not only a positive response from this long-established payment company to the era of digital assets but also a significant disruption to the global cross-border payment industry. Driven by increasingly clear regulations and surging market demand, USDPT on the Solana blockchain has the potential to rapidly achieve large-scale adoption thanks to Western Union's vast global network. This event indicates that stablecoins are quickly evolving from the initial cryptocurrency trading tools to the core infrastructure for financial giants competing for global payment market share.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions with caution.