Western Union, the global remittance giant, is entering the digital asset space with the launch of its own US Dollar Payment Token (USDPT), a regulated, dollar-backed stablecoin set to debut in the first half of 2026 on the Solana blockchain.
Issued by Anchorage Digital Bank, USDPT will allow users to send, receive, spend, and hold digital dollars, bridging traditional finance and crypto through Western Union’s new Digital Asset Network. The initiative aims to streamline cross-border payments and offer real-world utility for digital assets.
“Stablecoins are the next evolution of how remittances will move around the world,” said Devin McGranahan, CEO of Western Union, during the Money20/20 fintech conference in Las Vegas.
Africa: A Strategic Frontier for Stablecoin Adoption
Western Union operates in over 200 countries, including 50 across Africa, where it powers remittances through banks, mobile money operators, and agent networks. With Africa’s remittance inflows reaching $95 billion in 2024, the continent is a key target for USDPT adoption.
According to Western Union’s 2024 annual report:
- The company moved $102.9 billion in cross-border payments.
- The Middle East, Africa, and South Asia (MEASA) region accounted for $18.5 billion in consumer transfers.
- MEASA generated $665 million in revenue, with Sub-Saharan Africa, especially Nigeria, Kenya, and South Africa, described as “strategically important.”
USDPT could allow African users to receive remittances directly into digital wallets pegged to the dollar, bypassing slow bank settlements and cash agents. This shift supports growing demand for stablecoins in countries like Nigeria, Kenya, South Africa, and Ethiopia, where users already rely on USDT and USDC to hedge against inflation and currency volatility.
Regulated, Fast, and Built for Scale
Western Union selected Solana for its speed, scalability, and institutional-grade infrastructure. The company’s deep distribution network and compliance capabilities position USDPT as a potential game-changer in regulated stablecoin adoption.
“We looked at most alternatives and concluded that Solana was the right choice for our institutional use case,” McGranahan said.
If just $1 billion of African remittances move through USDPT, it could become one of the most widely held regulated stablecoins in the Global South, offering faster transfers, lower costs, and new revenue streams for Western Union via interest-bearing reserves.
Crypto Dollarisation and Regulatory Outlook
The launch of USDPT revives debate over crypto dollarisation in African economies. While stablecoins digitise existing dollar flows, they also raise concerns about monetary sovereignty. However, Western Union’s model—regulated, traceable, and built on Anchorage’s compliance-grade infrastructure- may offer a more palatable path for African regulators.
Countries like Rwanda, Botswana, South Africa, Ghana, Egypt, Morocco, and Uganda are already experimenting with central bank digital currencies (CBDCs). Western Union’s entry could accelerate regulatory clarity and digital finance adoption across the continent.
