Western Union, one of the world's most established payment networks, is taking important steps to adapt to the digital age.
The company, which established the first transcontinental telegraph line in 1861, is preparing to officially enter the world of cryptocurrencies by issuing a dollar-backed stablecoin.
The new digital asset, called “US Dollar Payment Token (USDPT),” is built on the Solana blockchain and issued by Anchorage Digital Bank. Western Union says its more than 100 million customers will be able to send money internationally through the token without being affected by local currency risk. Launch is scheduled for the first half of 2026.
“We may have come a long way from the telegraph, but the idea of connecting people through technology has been in our DNA for 175 years. Our transition to digital assets and stablecoins is a natural extension of that long journey,” said Western Union CEO Devin McGranahan.
The new stablecoin aims to make sending money around the world faster and more cost-effective. Wide acceptance among users could accelerate the growth of Western Union's stablecoin ecosystem. The company handles hundreds of billions of dollars in annual trading volume, and Anchorage is the first crypto institution in the U.S. to receive a federal banking license.
Western Union is also launching a new digital asset network featuring cryptocurrency wallet providers, allowing non-Western Union customers to exchange their crypto assets for local currency at more than 400,000 brick-and-mortar stores.
The company has historically been cautious about cryptocurrencies. But Western Union is now more receptive to digital assets, thanks to the stablecoin structure brought about by the Genius Act signed by US President Donald Trump this year, which reduces volatility, regulatory clarity and lower transaction costs. The Genius Act requires stablecoin issuers to back their tokens with safe assets such as cash or short-term Treasury bills.
But Western Union's rivals are one step ahead in integrating cryptocurrencies. PayPal launched its own stablecoin in partnership with Paxos Trust in 2023 and integrated its assets into the Xoom money transfer service. Meanwhile, MoneyGram released a wallet app in September that allows users to hold USD Coin (USDC).
Western Union announced in its third-quarter earnings report that it is testing stablecoin and blockchain technology in its treasury operations with the aim of speeding up money transfers and reducing reliance on traditional correspondent banking networks.
But while the company's stock has fallen more than 10% this year, Circle Internet Group, the company behind USDC, has soared more than 300% after its IPO.
*This is not investment advice.
