Western Union Launches Stablecard with USDPT for Global Remittances

Western Union has partnered with stablecoin infrastructure provider Rain to launch Stablecard, a digital wallet and Visa-branded card that enables users to hold and spend a US dollar-backed stablecoin, marking one of the company’s biggest moves into blockchain-based payments.

On Wednesday, Western Union said Stablecard allows users to hold, receive, transfer and spend USDPT, a US dollar-backed stablecoin issued by Anchorage Digital Bank on the Solana blockchain.

Stablecard launched in 37 markets, with Western Union aiming to expand availability to more than 60 markets by the end of the year. Users can receive Western Union money transfers directly into a USDPT wallet, transfer funds to compatible crypto wallets and exchanges and spend their balances anywhere Visa is accepted, including through Apple Pay and Google Pay.

The launch reflects Western Union’s effort to expand its role in the global remittance market as stablecoins gain traction for cross-border payments. The product is aimed at remittance recipients and consumers in countries with volatile local currencies, offering them the ability to hold savings in a dollar-backed digital asset while spending through existing payment networks.

Western Union unveiled USDPT in May as part of its broader digital asset strategy, describing it as a stablecoin designed to align with the framework established under the GENIUS Act, the recently enacted US law that sets federal rules for the issuance and oversight of payment stablecoins. The company has already expanded the token’s ecosystem through exchange partnerships, with Bybit adding support for USDPT trading and transfers in June.

Related: Mastercard expands support to USDC, PYUSD, RLUSD stablecoin settlement

Stablecoins push deeper into global money transfers

Stablecoins are increasingly reshaping cross-border payments as users seek faster and lower-cost alternatives to traditional remittance services, particularly in Africa and South America. 

The trend has prompted established money transfer companies to expand into digital assets. Western Union rival MoneyGram recently launched MGUSD, a US dollar-pegged stablecoin on the Stellar network. The token is designed to integrate with the MoneyGram app through a self-custodial wallet, allowing users to hold dollar-denominated balances, send funds globally and convert them into local currencies when needed.

However, stablecoins are not a universal solution for remittances. A recent Bank of Italy study found that stablecoin-based remittances did not consistently outperform traditional payment channels on cost or speed. The researchers attributed much of the remaining friction to fiat currency on- and off-ramps, where converting between bank deposits, cash and digital assets accounted for most transaction costs and settlement delays.

Related: US, UK reaffirm support for stablecoins, tokenization in joint financial regulation talks