Western Union, one of the world’s most established payment networks, is taking an important step to adapt to the digital age.
The company, which established the first transcontinental telegraph line in 1861, is preparing to officially enter the cryptocurrency world by issuing a dollar-backed stablecoin.
This new digital asset, called “US Dollar Payment Token (USDPT),” will be built on the Solana blockchain and issued by Anchorage Digital Bank. Western Union states that its more than 100 million customers will be able to transfer money internationally through this token, independent of local currency risks. The launch is expected in the first half of 2026.
“We may have moved a long way from the telegraph, but the idea of connecting people through technology has been in our DNA for 175 years. The transition to digital assets and stablecoins is a natural extension of that long journey,” said Devin McGranahan, CEO of Western Union.
The new stablecoin aims to make global remittances faster and more cost-effective. If it gains widespread acceptance among users, it could accelerate the growth of the Western Union stablecoin ecosystem. The company handles hundreds of billions of dollars in annual transaction volume, and Anchorage is the first cryptocurrency institution in the US to hold a federal bank license.
Western Union will also launch a new digital asset network featuring crypto wallet providers, allowing even non-Western Union customers to convert their crypto assets into local currencies at more than 400,000 physical branches.
The company had historically been wary of cryptocurrencies. However, thanks to its stablecoin structure, which reduces volatility, regulatory clarity, and lower transaction costs brought by the Genius Act, signed into law by US President Donald Trump this year, Western Union is now more receptive to digital assets. The Genius Act requires stablecoin issuers to back their tokens with safe assets like cash or short-term Treasury bonds.
Western Union’s rivals, however, are a step ahead in crypto integration. PayPal launched its own stablecoin in 2023 in partnership with Paxos Trust and integrated the asset into its Xoom remittance service. MoneyGram, meanwhile, launched 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, aiming to speed up money transfers and reduce reliance on traditional correspondent bank networks.
But the company’s shares have fallen more than 10% this year, while Circle Internet Group, the company behind USDC, has surged more than 300% following its IPO.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/breaking-western-union-one-of-the-oldest-payment-companies-announces-entry-into-the-cryptocurrency-market/
