Western Union Launches Inflation-Resistant ‘Stable Cards’ as Part of Its Stablecoin Strategy

Western Union is set to introduce a new "stable card" aimed at assisting users in high-inflation economies as part of its strategy surrounding stablecoins.

Key Takeaways

Western Union plans to launch a "stable card" to support users in high-inflation areas.
The company is expanding its digital asset offerings beyond traditional payments.
A stablecoin, built on the Solana blockchain, will be introduced, with a focus on the US Dollar Payment Token (USDPT).
The Digital Asset Network (DAN) will connect Western Union to various cryptocurrency providers.
Plans for a proprietary Western Union coin to optimize remittances in emerging markets have been announced.

Western Union eyes inflation-resistant ‘stable cards’ as part of its stablecoin strategy

At the recent UBS Global Technology and AI conference, CFO Matthew Cagwin discussed the company's move towards a multifaceted digital asset roadmap, moving beyond conventional cross-border payments. With inflation rates soaring as high as 250–300% in countries like Argentina, this initiative aims to protect the value of remittances, enabling users to retain more of their funds. Cagwin also shared plans for Western Union to launch its own cryptocurrency and leverage its expansive global reach.

Introduction of Stable Cards

During the UBS Global Technology and AI conference, Chief Financial Officer Matthew Cagwin detailed plans to create a stable card designed to safeguard users in high-inflation economies. Highlighting Argentina, which has recently experienced inflation rates soaring to 250–300%, he noted that remittances could lose a substantial amount of their value within a month. Cagwin explained, “Imagine a world where your family in the US sends you $500, but by the time you want to use it next month, it's only worth $300.” He added that the stable card would enhance their current prepaid card system available in the US.

Western Union's Coin Initiative

Cagwin also mentioned that Western Union intends to issue its own cryptocurrency. He expressed confidence in the company’s established global presence, spanning 200 countries, particularly in emerging markets where remittances constitute a considerable portion of GDP. He said, “We believe we can create a viable market for our coin in these regions, allowing us to maintain control over its economics, compliance, and overall distribution to achieve growth.”

Digital Asset Network Launch

A key component of Western Union’s digital asset strategy is the Digital Asset Network (DAN), which will connect the company with four on-ramp and off-ramp providers. Anticipated to go live in the first half of 2025, DAN aims to facilitate smoother transactions for cryptocurrency users.

Partnership with Solana for Stablecoin

As previously reported by Cointelegraph, Western Union confirmed that its forthcoming stablecoin settlement system will be based on the Solana blockchain. The new system will utilize the US Dollar Payment Token (USDPT) in conjunction with a Digital Asset Network developed in partnership with Anchorage Digital Bank. The USDPT is expected to launch in the first half of 2026 and will be distributed via partner exchanges.

Additionally, Western Union has filed a trademark application for “WUUSD,” which indicates intentions for a range of crypto services including a wallet, trading functionalities, and stablecoin payment processing. This application has been accepted but is still pending examination.

Closing Thoughts

Western Union's exploration into stablecoins and digital assets marks a significant shift in embracing blockchain technology to modernize its financial services and enhance its offerings in an increasingly digital economy.