Global payments provider Western Union is set to launch its U.S. dollar-backed stablecoin, USDPT, in May, marking a significant step in its push to find an alternative to SWIFT cross-border settlements. Built on Solana, the asset will initially serve as a backend settlement tool across select payment corridors.
At first glance, the move signals broader crypto adoption. However, the key question is why Western Union is issuing its own stablecoin rather than integrating existing market leaders such as Tether’s USDT or Circle’s USDC..
Sponsored
The answer points to a broader strategic shift: instead of joining the stablecoin ecosystem,
Western Union is effectively replicating its core components on its own terms. In doing so, the company positions itself not as a user of stablecoins, but as an issuer competing directly with established players.
Western Union Stablecoin Plans
During its Q1 earnings call, Western Union CEO and President Devin McGranahan said the company’s dollar-backed stablecoin, USDPT, is in the final stages of preparation and is expected to launch next month.
Built on Solana and issued by Anchorage Digital Bank, USDPT is expected to serve as an alternative to the SWIFT network, which Western Union currently uses to settle with its agents, rather than as a direct consumer product.
Alongside the stablecoin, the company is debuting the Digital Asset Network (DAN) to bridge crypto wallets with its retail network for currency conversion. Western Union also plans to release a Stable Card later this year, allowing users to hold and spend stablecoins globally.
Shift Toward Greater Control
By issuing USDPT, Western Union gains direct control over token issuance, including how much is created and under what conditions, as well as greater oversight of liquidity flows across its payment network. The structure also enables the company to internalize transaction fees that would otherwise be paid to third-party stablecoin issuers or intermediaries.
Taken together, these changes materially shift Western Union’s operational role from that of a traditional payment processor to a monetary layer operator with direct influence over digital dollar flows.
The model also places Western Union in direct competition with established stablecoin issuers rather than serving as a distribution partner.
Solana Selected for USDPT Issuance
Western Union has selected Solana over Ethereum to host its USDPT stablecoin, prioritising transaction speed and lower costs over decentralisation.
USDPT is being developed on Solana, which has increasingly been used for payments infrastructure, while Ethereum remains the dominant network for stablecoin issuance and liquidity, including USDT and USDC.
The decision marks one of the first instances of a major traditional financial institution choosing Solana as the primary issuance layer for a stablecoin.
Earlier this year, Western Union joined Mastercard and Worldpay in the Solana Foundation’s enterprise developer programme to explore stablecoin and blockchain-based payment applications.
Why This Matters
The move comes amid rising institutional interest in tokenisation and stablecoin use cases. While Solana currently accounts for only a small share ($1.4B) of the overall on-chain RWA market ($28.4B), the sector has continued to expand.
The trend is increasingly drawing attention from traditional financial institutions, rather than remaining confined to crypto-native issuers.
The development points to a broader shift in which the next phase of stablecoin adoption may be driven less by crypto-native firms and more by global financial networks with established distribution channels.
If this model proves viable, it could encourage other remittance providers, fintech companies, and banks to issue proprietary stablecoins rather than rely on existing assets such as USDT or USDC.
Discover DailyCoin’s hottest crypto news today:
What the KelpDAO Breach Reveals About Systemic Risk in DeFi Lending
Algorand Gets a Massive Glow-Up Via Coinbase Quantum Paper
People Also Ask:
USDPT is a U.S. dollar-backed stablecoin developed by Western Union, designed primarily for settlement use across its payment network rather than retail transactions.
Unlike Tether USDT and Circle USDC, which operate across multiple platforms, USDPT is being developed specifically for internal settlement use within Western Union’s network.
USDPT is expected to function initially as a backend settlement tool rather than a direct consumer-facing product.
