Western Union has announced plans to launch a new “stable card” aimed at protecting users in high-inflation regions as part of its strategy involving stablecoins.
At the UBS Global Technology and AI conference, CFO Matthew Cagwin stated that this initiative builds on the company’s recent investor-day presentation, which highlighted its transition from traditional cross-border payments to a comprehensive digital asset strategy.
Cagwin highlighted Argentina, where inflation recently reached 250–300%, mentioning how remittances can depreciate by nearly half in value within a month. “Imagine a scenario where your family in the US sends you $500, but by the time you use it next month, it’s only worth $300,” he noted.
“We see a significant utility for our stable card in such situations, representing an enhancement to our existing prepaid card in the US,” he added.
Related: Crypto Biz: Corporate stablecoin race heats up with Citi, Western Union at the forefront
Western Union to launch its own coin
Cagwin also disclosed Western Union’s plans to create its own coin. He mentioned that the company believes its expansive distribution network across 200 countries provides a competitive advantage, particularly in emerging markets where remittances are a crucial part of GDP.
“We believe there’s a viable market for our coin in these areas. We aim to manage the economics, ensure compliance, and oversee the distribution, all of which we believe can promote growth,” he stated.
A key aspect of the company’s digital asset strategy is its Digital Asset Network (DAN), which connects Western Union with four on-ramping and off-ramping service providers. The platform is projected to launch in the first half of 2025.
Related: Money giant Western Union to test stablecoin-enabled transfers
Western Union selects Solana for its stablecoin
As reported by Cointelegraph, Western Union has confirmed that its forthcoming stablecoin settlement system will be based on the Solana (SOL) blockchain. This system will utilize the US Dollar Payment Token (USDPT) along with a new Digital Asset Network developed in partnership with Anchorage Digital Bank. USDPT is expected to be launched in the first half of 2026, with distribution via partner exchanges.
Furthermore, Western Union has applied for a trademark for “WUUSD,” indicating plans for a range of crypto services, including a wallet, trading capabilities, and stablecoin payment processing. The application has been accepted but has not yet been assigned to an examiner.
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