Banking giant Western Union has built on its push to digital assets after securing a new partnership to power its stablecoin launch on Solana. This comes after the bank had shared plans for last year for a stablecoin rollout.
Western Union Taps Crossmint to Launch USDPT Stablecoin
In a press release, Crossmint announced its partnership with the banking giant for the launch of USDPT. This is a stablecoin backed by the United States Dollar and built on the Solana blockchain. The partnership will be for the bank’s new Digital Asset Network.
The Digital Asset Network of Western Union will connect stablecoins to real-world cash. This will enable users to exchange digital dollars for local currency via more than 360,000 points of collection worldwide.
This comes after the bank, in October last year, announced its plan to introduce a new stablecoin dubbed the U.S. Dollar Payment Token (USDPT) in 2026. The bank further revealed at the time that the only federally chartered cryptocurrency bank in the US, Anchorage Digital Bank, will issue the stablecoin.
The new partnership will be able to support the launch of new fintech innovations to move funds instantly on Solana, store funds in digital dollars, and access Western Union’s payout options.
Notably, Western Union had partnered with Rain to enable the spendability of stablecoins into cash form. This meant that users of Rain-powered wallets who held stablecoins could spend these and receive local fiat cash payouts at any of the bank’s agent locations.
Banks Adopt Stablecoins but Continue Clash With Crypto Firms
More financial institutions have continued to adopt stablecoins as regulatory clarity grows. However, provisions in the U.S crypto market bill have continued to stall as banks refuse to shift grounds on the rewards system for crypto firms.
On Wednesday, Banks rejected the White House’s compromise on the CLARITY Act despite pressure from political bodies. In response, Eric Trump attacked big banks similar to Western Union for lobbying against cryptocurrencies and stablecoins. He claimed that they are robbing customers of better financial opportunities.
He especially targeted JPMorgan Chase and Bank of America for opposing a bid to enable U.S. crypto exchanges to earn interest on their customers’ stablecoin deposits. Eric Trump further added that the American Banking Association and other lobbyists are spending millions on banning 4-5% yields on stablecoins under the legislation.
Source: https://coingape.com/3b-western-union-expands-into-crypto-with-usdpt-stablecoin-launch-on-solana/
