Western Union (WU) shares increased by 6.5% on Tuesday following the announcement of their plan to launch the U.S. Dollar Payment Token (USDPT) on Solana, issued by Anchorage Digital Bank, in addition to a crypto off-ramp network named the Digital Asset Network.
This initiative highlights that stablecoins represent an opportunity rather than a challenge for remittance companies willing to innovate, as noted by investment bank William Blair.
Analysts from the bank anticipate more information during Western Union’s investor day on November 6, expressing that stablecoin remittances could accelerate settlements, reduce pre-funding requirements, and enhance capital efficiency, particularly in markets vulnerable to inflation.
The Digital Asset Network, which facilitates cash-out options at 380,000 Western Union agents, illustrates how remittance companies can capitalize on stablecoin transactions, although the integration of fiat on- and off-ramping poses a significant obstacle.
While advancements in digital and consumer services are evident, the report also pointed out slow growth in core money transfers and possible challenges from a proposed remittance tax in 2026.
The firm indicated that Western Union’s attractive 10% dividend yield and a modest 5.3x 2026 P/E ratio should bolster the stock’s value, but maintained a market perform rating, stating that revenue growth and digital strategy execution will be critical for management’s future success.
WU shares increased by 2% to $9.68 shortly after the market opened.
Read more: Western Union CEO Views Stablecoins as an Opportunity, Not a Threat: Bloomberg
