Money transfers are undergoing a silent revolution. Western Union, the historic leader in the sector, now bets on stablecoins and “stable cards” to protect fund transfers against the devouring inflation of fragile economies. A bold strategy, at the crossroads of traditional finance and crypto innovation, that could well reshape the future of remittances.
In Brief
- •Western Union wants to launch “stable cards” to protect money transfers against inflation in emerging markets.
- •Western Union is also preparing its own stablecoin (WUUSD) and a digital asset network (DAN) to modernize transfers.
- •Solana was chosen as the blockchain support for Western Union’s stablecoin, thanks to its speed and low costs.
Western Union “Stable Cards”: A Concrete Response to Inflation
In countries like Argentina, where inflation nears 300% per year, a $500 transfer can lose half its value in a few weeks. Facing this reality, Western Union thinks about “stable cards“, prepaid cards backed by stable assets. These cards will allow recipients to preserve the purchasing power of their funds, even in a context of accelerated currency depreciation.
This solution relies on the company’s existing network, already well established in emerging markets. Users will be able to top up their cards with stablecoins, thus avoiding local currency fluctuations. Western Union prioritizes economies where remittances represent a significant share of GDP. In Latin America, Africa, or Asia, these cards could become a tool to secure household incomes. A pragmatic response to an urgent economic problem, combining ease of use and crypto technology.
Stablecoins and Digital Asset Network: Outlines of an Ambitious Strategy
Western Union does not stop at the “stable cards“. Indeed, the company is also preparing the launch of its own stablecoin, WUUSD, over which it will have full control of compliance and distribution. This project fits into a broader vision: the Digital Asset Network (DAN), a platform connected to crypto service providers to facilitate exchanges between fiat currencies and digital assets.
DAN and the USDPT stablecoin are expected to be operational by the first half of 2026. Their distribution will involve partnerships with exchanges and local financial institutions. Meanwhile, Western Union has filed a trademark for “WUUSD”, paving the way for a range of crypto services, including wallets, trading, and payments.
Crypto: Why Does Western Union Trust Solana?
To support its stablecoin, Western Union has set its sights on Solana, a blockchain known for its speed and low transaction costs. A strategic choice, as competition rages between Ethereum, Stellar, and other crypto networks. Solana indeed offers superior scalability, a key argument for large-scale cross-border transactions.
However, this partnership is not without risks. Indeed, the stability of the Solana network has already been tested in the past, and its widespread adoption will depend on its ability to maintain its performance. If the bet succeeds, Western Union could outpace competitors like PayPal or Wise, who are also exploring crypto solutions.
Western Union leads the way: what if crypto became the standard for money transfers? Its “stable cards” and stablecoin project could well accelerate the adoption of digital assets in emerging economies. But this transition raises questions: will regulators follow? Will users massively adopt these solutions?