Table of Contents
TL;DR,
- Stablecoin remittances represented 43% of Africa’s total crypto volume, prompting Western Union to launch its own dollar-pegged stablecoin, USDPT, on Solana to capture this growing market.
- Western Union will issue USDPT via Anchorage Digital Bank and launch a Digital Asset Network on Solana, merging institutional compliance with wallet-to-cash off-ramps.
- Expect fewer correspondent bank dependencies, lower fees, and pressure on competitors and banks to launch their own stablecoins to keep pace.
Stablecoin remittances are fueling the current crypto market. Bitcoin ETFs have institutionalized digital assets, but not every organization is as daring or has enough finances to burn their industrial pockets as Strategy or BlackRock. Stablecoins became the new go-to initiative, and Western Union just joined the game by announcing the launch of its very own blockchain settlement rails, introducing their own dollar-backed digital asset, the U.S. Dollar Payment Token (USDPT).
Inside the Western Union stablecoin launch.
With support from more than 200 countries and the ability to handle more than 70 million transfers, Western Union is refocusing its efforts on digital assets. Stablecoins are taking a front seat, and stats from Africa alone prove it. The market is hungry for better settlement rails, and Western Union answered this call. The 175-year-old money transfer giant announced it’s rolling out its U.S. Dollar Payment Token (USDPT) on Solana alongside a new Digital Asset Network that bridges digital value with local cash access.
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CEO Devin McGranahan described the tangent towards stablecoin remittances as an opportunity to innovate. USDPT is designed to own the economics linked to stablecoins while expanding how customers send, receive, spend, and hold value through a seamless, regulated experience.
“What we see is stablecoin really as an opportunity, not as a threat. We’re investigating how we might offer stablecoin products in our digital wallets to our customers around the world.”
Western Union was initially hesitant over adopting cryptocurrencies for obvious reasons (volatility); however, stablecoins offer reduced reliance on correspondent banks, shortening transaction times and improving capital efficiency.
In Africa, stablecoins are a means to hedge against inflation, access the international market, and provide a better payment medium than most traditional mobile money platforms.
How Western Union Uses Blockchain: The USDPT Technical Framework
Alongside the USDPT launch is the Digital Asset Network, a comprehensive backend platform that shifts Western Union from TradFi to DeFi. The company partnered with Solana due to its high performance, stability, and security. A vital aspect considering Western Union is aiming for “whales,” providing a platform where institutes can opt for an upgrade from expensive bank transfers.
As McGranahan explained;
“If you are Western Union, and you are already moving $100 billion a year across borders, picking a partner that does that fast, efficiently, stably, and securely is really important.”
Anchorage Digital Bank, a federally regulated institute, will issue the USDPT, providing institutional-grade security measures and compliance protocols. Zooming out, the partnership structurally addressed how Western Union uses blockchain.
Anchorage Digital Bank N.A. is the
first and only federally chartered cryptocurrency bank in the U.S., providing institutional clients a secure, regulated platform for participating in the digital asset ecosystem.[Photo: Medium]
Stablecoin remittances will be available in the first half of 2026, with users accessing them via partner exchanges for broad accessibility and ease of use. The company plans to enable customers to send, receive, spend, and hold USDPT through a seamless user experience supported by its global compliance and risk management capacities.
McGranahan stated,
“As we evolve into the digital assets space, Western Union’s USDPT will allow us to own the economics linked to stablecoins.” “Separately, we are excited to announce our Digital Asset Network, a solution for the last mile of the crypto journey by partnering with wallets and wallet providers to provide customers with seamless access to cash off-ramps for digital assets by leveraging our global network.”
Courting Institutional Money with Better Rails
Cross-border stablecoin payments have backed up 2025’s crypto market. In Africa it represented 43% of the continent’s total crypto volume. Western Union is already popular in the Middle East, Africa, and South Asia (MEASA), moving over $102.9 billion in cross-border payments in 2024, with the region accounting for 18% ($18.5 billion) of consumer money transfers. This excludes the $665 million in revenue from the region.
With USDPT and the Digital Asset Network, 50 African countries have access to institutional-grade transfers, meaning no more paying over 3% in transfer fees. Western Union serves over 150 million customers, and its MEASA region posted the largest year-to-date growth in regional revenues and transactions in its Q3 2025 report.
For the money transfer giant, the stablecoin remittance service is a chance to access Africa’s $95 billion remittance market, according to figures from the Institute for Security Studies. The bank itself once described Nigeria, Kenya, and South Africa as strategically important within its global network.
It’s a fact, especially with the three regions being the go-to investment regions for most digital asset projects. Various banks such as NeoBank, CitiBank, and Absa also launched various blockchain-based platforms, growing what many deem as 5% of Africa’s digital asset potential.
How Western Union Uses Blockchain to Compete in an Evolving Market
The Western Union stablecoin launch mirrors current adoption trends. Global competitors like Zelle and MoneyGram and African banking systems are integrating digital assets for faster, more efficient cross-border stablecoin payments.
The Digital Asset Network will serve both digitally fluent users and communities where cash remains essential. In 2024, Western Union generated $3.8 billion in revenue (down from $4.2 billion in 2023), with most coming from transaction fees. The blockchain-enabled settlement is a nice touch to staying current with the new technology.
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McGranahan elaborated:
“Our Digital Asset Network and USDPT will be enablers in achieving our mission to make financial services accessible to people everywhere.”
US dollar-pegged stablecoins will eventually become the backbone for digital commerce. It also inspired local stablecoins such as the digital rand (ZAR) and CNGN stablecoin. It generates a need and easier concessions.
Hypothetically speaking, if Western Union would add CNGN/USDPT accounts, Nigerian startups and organizations could directly transact with global customers throughout Africa and globally. Its low cost is coupled with adoption and digitizing Africa’s fiat currency. It might not do much in terms of increasing its value, but it offers easier cross-border stablecoin payments.
Western Union’s carefully orchestrated entry into stablecoin remittances represents a technical upgrade and a fundamental reimagining of how value moves across borders. We already have a rising list of stablecoins available: PYUSD, RLUSD, USDT, and USDC. At whatever angle its progress, it could start a chain reaction prompting other banking institutes to develop their own stablecoins.
