Western Union plans stablecoin prepaid card for countries battling inflation

Western Union is building a stablecoin-backed prepaid card targeting countries with high inflation rates.

The money transfer giant plans to offer the product in markets where local currency depreciation erodes purchasing power, CFO Matthew Cagwin told the UBS Global Technology and AI conference.

Cagwin pointed to Argentina as a prime use case, where inflation exceeded 200% last year. The dollar-denominated card would help preserve value for remittance recipients in economies facing rapid currency devaluation.

Rain partnership brings Visa stablecoin cards

Western Union has partnered with Rain to issue Visa cards linked to stablecoins. The collaboration allows users to convert digital assets stored in wallets connected to Rain’s platform into local cash at Western Union branches.

The company is building on-ramps and off-ramps within its digital asset network to reduce banking system dependence and accelerate fund settlement. “We’re working with several providers to build this infrastructure,” Cagwin stated.

Western Union plans to launch the US Dollar Payment Token (USDPT) in 2026, a stablecoin issued by Anchorage Digital on the Solana network. The token will integrate with the company’s broader digital asset strategy.

The prepaid card will function as a bridge between stablecoins and everyday spending in high-inflation economies.

Users receive remittances loaded onto cards denominated in dollars. The cards can be spent at merchants or withdrawn as cash at Western Union locations.

Company reverses decade-long crypto skepticism

Western Union maintained a dismissive stance toward cryptocurrencies for years. In 2017, Chief Technology Officer David Thompson questioned Bitcoin’s viability as currency, comparing crypto to commodities rather than functional money.

The company argued that digital assets lacked governance, compliance, and stability for mainstream adoption.

The position changed in late 2025 after clearer regulatory frameworks surfaced. CEO Devin McGranahan said historical caution stemmed from “concerns around volatility, regulatory uncertainty, and customer protection.”

Other stablecoin news

Pakistan announced plans to launch its first stablecoin as part of efforts to integrate virtual assets into the economy.

Bilal Bin Saqib, chairman of Pakistan Virtual Assets Regulatory Authority (PVARA), told Binance Blockchain Week in Dubai that the country is “definitely” launching a stablecoin.

“I think it is a great way to collateralize the government debt,” Saqib said. “We want to be at the forefront of this financial digital innovation. Why should we be at the tail-end of it when we have the muscle and the adoption?”

PVARA is working on Central Bank Digital Currencies alongside stablecoin development. Saqib unveiled Pakistan’s Strategic Bitcoin Reserve earlier this year and the government allocated 2,000 megawatts of electricity for Bitcoin mining and AI data centers in May.