Western Union is preparing to launch a US dollar-backed stablecoin in May, positioning the token as a faster alternative to the SWIFT network for cross-border agent settlements.
The company confirmed the timeline for the Solana-based token, called USDPT, during its first-quarter earnings call on 24 April, as reported by The Block.
Western Union CEO Devin McGranahan told analysts that USDPT will initially function as a business-to-business settlement tool rather than a consumer product.
By moving agent settlements on-chain, the company aims to process transactions outside of traditional banking hours and public holidays.
Bridging crypto wallets and retail cash
Alongside the Western Union stablecoin, the company is rolling out a Digital Asset Network. This infrastructure connects cryptocurrency wallets to Western Union’s existing retail network.
The system allows wallet users to convert digital assets into fiat currency at physical agent locations, creating a new off-ramp for digital assets. The first network partner is expected to go live this week.
To extend the network directly to consumers, Western Union plans to introduce a US dollar stablecoin card later this year.
The card is designed for users in inflation-heavy markets who want to hold and spend dollar-denominated assets globally.
Q1 revenue and market reaction
The digital asset push comes as Western Union reported US$983 million in first-quarter revenue.
While this marks a 1% year-on-year decline, the company noted it was a 400-basis-point improvement from the previous quarter. Following the earnings release, its New York-listed stock fell 4.6% to close at US$8.90.
Featured image credit: Edited by Fintech News Singapore, based on image by ismode via Freepik
