Western Union Launches Stablecoin “USDPT” on Solana

Information disclosed about this token

In a major move that could reshape the cross-border finance industry, Western Union (WU) — one of the world’s largest money transfer and payments companies — has announced plans to launch its own US dollar-backed stablecoin USDPT, on the Solana blockchain, in early 2026.

This is a watershed moment for both traditional finance and the crypto industry. For over 170 years, Western Union has been synonymous with global money transfers. Now, with USDPT, Western Union is applying blockchain to modernize its infrastructure, reduce costs, and compete directly with both stablecoin issuers and disruptive fintech companies like Circle, PayPal, and Wise.

• Name : USDPT (US Dollar Payment Token)

• Chain: Solana

• Form of guarantee: Fully collateralized 1:1 with US dollar reserves held at regulated financial institutions.

• Speed ​​& Cost: Leveraging Solana's high throughput (up to 65,000 transactions per second) and sub-second finality, USDPT aims to enable near-instant transfers at a cost of just a few percent per transaction.

• Interoperability: Designed for on-chain payments, remittances, currency conversions and merchant payments, with APIs that integrate into Western Union's global network.

• Regulatory Compliance: Issued under US and EU e-money frameworks, ensuring compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.

Solana's speed rivals Western Union's scale

USDPT—the US Dollar Payment Token—will be fully backed 1:1 by US dollar reserves held in segregated accounts at Anchorage Digital, a federally licensed crypto bank, ensuring redemption and transparency through monthly attestations and on-chain proof.

Deployed on Solana with a throughput of 1,500 transactions per second (TPS) and a fee of $0.00025, USDPT targets Western Union's core Money Transfer service, with an average fee of 6.5% and an average latency of 3 days. Initial tests, with 50 agents in Latin America and Asia, processed $5 million in test transactions, demonstrating instant settlement capabilities via Solana's Wormhole bridge for cross-chain interoperability with Ethereum and Polygon.

Western Union’s blockchain flirtation dates back to a 2018 partnership with IBM for Hyperledger-based remittances, but caution reigns — $150 billion in annual cash flows require strict compliance amid FATF scrutiny. A 2024 pilot program with Solana tested $10 million on the U.S.-Philippines corridor, reducing fees by 60% and latency by 80%, paving the way for USDPT.

Unlike Tether’s lack of transparency overseas (fined $41 million in 2021), Anchorage’s support for USDPT ensures US regulatory compliance, avoiding MiCA hurdles in the EU.

Evaluation and Conclusion

USDPT’s choice of Solana is a wise one: 1,500 TPS and the Wormhole bridge reduce remittance friction, targeting Western Union’s 500,000 agents to speed up fiat-to-crypto transfers. Against a macro backdrop of the Fed’s 4.25% interest rate and the BRICS digital yuan pilot, USD-pegged assets provide an inflation hedge (CPI 2.8%), with USDPT issuer support to ensure the integrity of the exchange rate against Tether’s volatile movements. The $800 billion in remittance TAM—15% of Western Union’s market share—could see 20% ($24 billion) move to USDPT by 2028, reducing fees from 6.5% to 0.1%.

Disclaimer: The information presented in this article is the author's personal opinion in the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.