Western Union focuses on inflation-resistant “stable cards” as part of stable coin strategy

Western Union has announced 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, Chief Financial Officer Matthew Cagwin said the initiative builds on the company’s clearing to investors that it is moving beyond traditional cross-border payments to a multi-pillar digital asset roadmap.

Cagwin noted that Argentina’s annual inflation rate has recently reached 250-300%, and remittances can lose nearly half their value in a month. “Imagine a world where your family in the U.S. sends you $500 home, but by the time you spend it the next month it’s only worth $300,” he says.

“We see great utility for stable cards there. This is an increment of prepaid cards that are currently in use here in the U.S.,” he added.

Related: Cryptobiz: Corporate stablecoin competition intensifies as Citi and Western Union take the lead

Western Union issues coins

Cagwin also revealed Western Union’s intention to issue its own coin. He said the company believes its distribution footprint across 200 countries gives it a natural advantage, especially in emerging markets where remittances account for a large share of GDP.

“We think we can create a market for our coins in these markets, and we wanted to be able to control the economics, control the compliance, control the entire distribution. And we think we can grow beyond that,” he said.

Another key part of the company’s digital asset strategy is the Digital Asset Network (DAN), which connects Western Union to four on-ramp and off-ramp providers. The platform is expected to go live in the first half of 2025.

Related: Financial giant Western Union introduces stablecoin-based remittances on a trial basis

Western Union selects Solana as stablecoin

As reported by Cointelegrpah, Western Union has confirmed that its upcoming stablecoin payment system will be built on the Solana (SOL) blockchain. The system is centered around the US Dollar Payment Token (USDPT) and a new digital asset network developed with Anchorage Digital Bank. USDPT is scheduled to launch in the first half of 2026 and will be distributed through partner exchanges.

Western Union has also filed a trademark application for “WUUSD,” hinting at plans for a suite of crypto services including wallets, trading capabilities, and stablecoin payment processing. The application has been accepted but has not yet been assigned to an examiner.

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