International monetary providers firm Western Union is making a strategic transfer into the world of stablecoins, responding to the evolving panorama created by the latest passage of the GENIUS Act within the US.

On Tuesday, the corporate introduced its intention to launch the US Greenback Cost Token (USDPT), a brand new stablecoin, alongside its Digital Asset Community designed to combine digital and fiat currencies.

Western Union New USDPT Stablecoin

Constructed on the Solana (SOL) blockchain and issued by Anchorage Digital Financial institution, USDPT goals to broaden the choices for transferring cash for patrons, brokers, and companions, whereas additionally bolstering Western Union’s treasury capabilities. 

Via this initiative, the corporate plans to offer customers with entry to digital property, permitting them to ship, obtain, spend, and maintain USDPT with ease, supported by Western Union’s international compliance and danger administration framework.

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Devin McGranahan, President and CEO of Western Union, expressed the corporate’s dedication to harnessing rising applied sciences to empower clients and communities. 

“As we transition into the digital asset area, USDPT will allow us to take possession of the economics related to stablecoins,” McGranahan said. 

He additionally highlighted the importance of the Digital Asset Community, which goals to simplify money off-ramps for digital property by partnering with wallets and pockets suppliers, thereby permitting seamless entry for patrons through Western Union’s in depth international community.

Western Union anticipates that USDPT will launch within the first half of 2026, with plans for customers to entry the stablecoin by way of associate exchanges, guaranteeing broad availability and user-friendliness.

Stablecoins To Cut back Reliance On Conventional Banking

Throughout Western Union’s third quarter of the yr earnings name final Thursday, McGranahan revealed that the corporate has initiated a pilot program using stablecoins for worth switch. 

He famous that this pilot goals to leverage blockchain expertise and stablecoins to lower reliance on conventional correspondent banking programs, which can assist shorten settlement occasions and improve capital effectivity.

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Traditionally, Western Union has maintained a cautious strategy in direction of crypto, primarily resulting from considerations relating to volatility, regulatory challenges, and buyer safety. 

Nonetheless, with the enactment of the GENIUS Act, McGranahan indicated that new alternatives are rising for integrating digital property into the corporate’s operations, enhancing effectivity, lowering friction, and finally bettering the shopper expertise.

Western Union facilitates the switch of billions of {dollars} yearly, boasting a market capitalization of over $2.9 billion as of October 28, and producing greater than $1 billion in adjusted income within the third quarter of the yr alone.

Regardless of the announcement, SOL’s value has didn’t react positively, at the moment making an attempt to carry the $200 line because the cryptocurrency’s subsequent short-term help.

Featured picture from DALL-E, chart from TradingView.com