Western Union has revealed plans to introduce a new “stable card” to protect users in high-inflation economies as part of its stablecoin strategy.
Speaking at the UBS Global Technology and AI conference, CFO Matthew Cagwin said the initiative builds on the company’s revelation at investor day that it is moving beyond traditional cross-border payments and toward a multi-pillar digital asset roadmap.
Cagwin pointed to Argentina, where annual inflation recently reached between 250% and 300%, and noted that remittances can lose almost half their value in a month. “Imagine a world where your family in the United States sends you $500 home, but when you spend it the next month, it’s only worth $300,” he said.
“We can see a good utility for our stable card there, which is an increase in our prepaid card that we have today here in the United States,” he added.
Related: Crypto Biz: Corporate race for stablecoins intensifies with Citi and Western Union in the lead
Western Union will issue a coin
Cagwin also revealed Western Union’s intention to issue its own currency. He said the company believes its distribution presence in 200 countries gives it a natural advantage, especially in emerging markets where remittances account for a significant proportion of GDP.
“We believe we can create a market for our currency in those markets. And we wanted to be able to control the economy, control compliance and control overall distribution, and we believe we can grow that beyond that,” he said.
Another important part of the company’s digital asset strategy is its Digital Asset Network, or DAN, which links Western Union with four inbound and outbound providers. The platform is expected to go live in the first half of 2025.
Related: Monetary giant Western Union to test stablecoin-powered transfers
Western Union chooses Solana for its stablecoin
As reported by Cointelegrpah, Western Union has confirmed that its next stablecoin settlement system will be built on the Solana (SOL) blockchain. The system will focus on the US Dollar Payment Token (USDPT) and a new digital asset network developed with Anchorage Digital Bank. USDPT is planned to launch in the first half of 2026, with distribution through partner exchanges.
Western Union has also filed a trademark application for “WUUSD,” indicating plans for a suite of crypto services, including a wallet, merchant functions, and stablecoin payment processing. The submission has been accepted but not yet assigned to an examiner.
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