Western Union is developing a prepaid card backed by stablecoins, specifically targeting countries experiencing high inflation rates. The initiative aims to provide a stable financial tool in economies where local currency depreciation significantly impacts purchasing power.
The company plans to introduce the USDPT token on the Solana network in 2026. This token is designed to integrate seamlessly with Western Union's existing remittance network, facilitating easier transactions for its users.
A key partnership with Rain will enable the issuance of Visa stablecoin cards. This collaboration will also allow for direct crypto-to-cash conversions, offering users more flexibility in managing their digital assets and accessing funds.
Rain Partnership Facilitates Visa Stablecoin Cards and Crypto-to-Cash Conversions
Western Union's collaboration with Rain is set to introduce Visa cards that are directly linked to stablecoins. This partnership provides a significant avenue for users to convert their digital assets, held within wallets connected to Rain's platform, into physical cash at any Western Union branch.
The money transfer service is actively building both on-ramps and off-ramps within its digital asset network. The primary objectives of this development are to reduce reliance on traditional banking systems and to expedite the settlement of funds, making transactions quicker and more efficient.
CFO Matthew Cagwin highlighted Argentina as a prime example of a market that would benefit from this new product. In Argentina, inflation surpassed 200% last year, significantly eroding the value of the local currency. The dollar-denominated card is intended to help remittance recipients in such economies preserve the value of their funds against rapid currency devaluation.
Western Union intends to launch the US Dollar Payment Token (USDPT) in 2026. This stablecoin will be issued by Anchorage Digital and will operate on the Solana network. The USDPT is a crucial component of the company's broader digital asset strategy, aiming to bridge the gap between digital currencies and everyday financial needs.
The prepaid card will serve as a vital link between stablecoins and daily spending in economies grappling with high inflation. Recipients of remittances will have funds loaded onto cards denominated in US dollars. These cards can then be used for purchases at merchants or for cash withdrawals at Western Union locations.
Company Reverses Long-Standing Skepticism Towards Cryptocurrencies
For many years, Western Union maintained a cautious and often dismissive stance regarding cryptocurrencies. As far back as 2017, its Chief Technology Officer, David Thompson, expressed doubts about Bitcoin's viability as a currency, suggesting that crypto assets were more akin to commodities than functional money.
At that time, the company's argument was that digital assets lacked the necessary governance, compliance, and stability required for widespread adoption in mainstream financial systems.
This position began to shift in late 2025, coinciding with the emergence of clearer regulatory frameworks for digital assets. CEO Devin McGranahan explained that the company's previous caution was primarily due to concerns surrounding volatility, regulatory uncertainty, and the protection of customers.
Other Developments in the Stablecoin Landscape
In related news, Pakistan has announced its intention to launch its first stablecoin. This move is part of a broader strategy to integrate virtual assets into the nation's economy.
Bilal Bin Saqib, chairman of Pakistan's Virtual Assets Regulatory Authority (PVARA), confirmed the country's commitment to launching a stablecoin during Binance Blockchain Week in Dubai. He stated that the launch is "definitely" happening.
Saqib believes that a stablecoin could serve as an effective way to collateralize government debt. He expressed Pakistan's desire to be at the forefront of financial digital innovation, emphasizing the country's capacity and adoption potential in this evolving space.
PVARA is concurrently working on developing Central Bank Digital Currencies (CBDCs) alongside its stablecoin initiatives. Earlier this year, Saqib also unveiled Pakistan's Strategic Bitcoin Reserve. In May, the government allocated 2,000 megawatts of electricity specifically for Bitcoin mining and AI data centers.