Western Union(NYSE: WU) is thought for being the cash switch service that helped wire the American West within the nineteenth century. Now, it needs to wire the world’s cash with a digital greenback. That is why it is planning to launch a brand new stablecoin on Solana(CRYPTO: SOL) known as U.S. Greenback Fee Token (USDPT) in 2026.
If profitable, this new association may very well be vital for each events. Here’s what you want to know.
Picture supply: Getty Pictures.
Western Union’s plan is to challenge a stablecoin on Solana, combine it throughout the corporate’s huge cash switch community, after which use the chain to transfer worth shortly and cheaply world wide at industrial scale. Meaning it will likely be a business-reshaping transition for Western Union, and a significant new person for Solana. Since Solana’s strengths are in its rock-bottom charges, snappy transaction occasions, and excessive throughput, it is an excellent alternative to accomplish the corporate’s objectives.
Solana’s base price is roughly 0.000005 SOL, the blockchain’s native coin. That normally works out to be a fraction of a cent per transaction, with the power to pay non-compulsory precedence charges for when velocity is crucial and the community is busier than standard. With different main cost gamers already testing stablecoin settlement on Solana, there’s thus a rising operational playbook for processing such flows on the chain. Concerning settlement occasions, most transfers are closed and finalized in just some seconds, regardless of how far the funds want to journey or to what pockets tackle.
The benefit Western Union beneficial properties by utilizing Solana is thus fairly vital.
Customary international remittance fees nonetheless common about 6.5% of the switch quantity. What’s extra, worldwide transfers typically take a couple of days to settle, which is a very long time for money to be in limbo. By closing transactions sooner and by incurring decrease charges than beforehand, Western Union shall be in a position to recoup a big quantity of working capital. It will likely be equally advantageous for its clients, as they could find a way to notice a lot decrease costs and far sooner transfers.
Scale is Western Union’s ace card. The corporate has tons of of 1000’s of agent areas and a world footprint spanning greater than 150 nations. If even a modest slice of its flows migrate to its stablecoin by the top of 2026, Solana may see a sturdy and enormous enhance in on-chain stablecoin transfers and account exercise.
For Solana holders, onboarding Western Union to the community goes to be much more than a one-day pop for the coin’s worth. The corporate reported that for its 2024 fiscal 12 months, it processed $102.9 billion in principal for its clients performing cross-border transfers. It is potential that throughout the subsequent few years, 100% of that quantity shall be transitioned to being processed over Solana.
The chain thus now has a chance to start entrenching itself as a default for high-frequency, low-value transfers. In apply, that may begin to compound its present community results, encourage extra service provider and pockets integrations, and doubtless raise long-term demand for the coin, bolstering costs alongside the best way.
For Western Union shareholders, the upside is twofold. First, the corporate may cut back its personal prices whereas nonetheless charging a aggressive retail price, boosting unit economics. Second, a local stablecoin provides the enterprise extra management over treasury, liquidity, and cross-border interoperability with digital wallets, which helps new merchandise. Administration has already flagged its digital section as a progress lever.
The takeaway is that this partnership is an actual vote of confidence in Solana’s capability for on a regular basis funds. It is also a reputable modernization path for Western Union, so it is bullish for each property, however particularly for Solana. When you already personal Solana, this strengthens the funding thesis for a long-term maintain. It’d even be price shopping for a bit extra, to squeeze out some extra upside from the chain choosing up a significant new consumer.
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