Western Union plans a stablecoin-powered card to protect remittances in high-inflation markets as part of its digital asset roadmap.
Western Union plans to launch a stablecoin-powered “stable card” designed to protect remittance recipients in economies with high inflation. The initiative was announced by the company at the UBS Global Technology and AI conference, showcasing the company’s transition to a multi-pillar digital asset strategy.
Western Union Expands Digital Asset Ambitions
In the conference, chief financial officer Matthew Cagwin emphasised that the project is based on the previous investor-day commitments. He reported that Western Union will cease to do cross-border payments, as it has always done, and switch to blockchain solutions and stablecoin rails.
Western Union is developing a prepaid stablecoin card for countries with high inflation. CFO Matthew Cagwin stated at the UBS Global Technology and AI Conference that the product aims to help users protect purchasing power from rapid currency depreciation. For example, in…
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Cagwin estimates the inflation rate of such countries as Argentina as 250 to 300 percent per year, which lowers the worth of remittances by almost 50 percent in a month. The inflation estimates are supported by several reports and public filings which indicate that remittances are experiencing a swamping value.
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He cited that families that enjoy 500 dollars are sometimes able to obtain around 300 dollars of buying strength following weeks of depreciation. Hence, the new product is supposed to maintain value because it will enable the users to store money in a dollar-denominated balance. These issues are supported by sources related to conference materials and industry blogs, which emphasize the urgency of digital solutions that can stabilize the results of remittances.
Stablecoin Card Designed to Protect Value
The stable card will enable the recipients to store money in U.S dollar balance rather than local currencies. This role resembles a saving device which protects transfers against severe depreciation. In addition, experts predict strong demand in Western Union’s target markets with inflation above 200 percent. People in these regions value tools that help preserve their money.
In addition, the card will be an extension of what already exists in prepaid services offered by the company. It will be connected to the next digital asset network launched by Western Union which runs on the U.S. Dollar Payment Token that is a stablecoin created on Solana blockchain. This framework focuses on offering rapid settlement and low prices, based on proven blockchain infrastructure.
The new stablecoin will be issued and held by Anchorage Digital Bank. This is a federally regulated partner that Western Union gets a compliant start to the digital asset expansion. Moreover, Anchorage gives safe storage of the U.S. Dollar Payment Token that enables easy integration with the systems at Western Union. According to industry sources, the oversight of Anchorage allows large financial companies to embrace stablecoin products without any regulatory ambiguity.
Moreover, the card will rely on Solana’s fast settlement layer to process stablecoin transfers efficiently. Additionally, Solana’s design enables users to handle transactions with reduced delays. Furthermore, several blockchain blogs and conference summaries explain how Solana lowers financial application costs. Consequently, these insights highlight Solana’s growing role in affordable digital payments.
Launch Timeline and Broader Financial Impact
Western Union intends to launch the complete system, consisting of the stablecoin network and the stable card, in the first half of 2026. This plan is in line with the long-term objective of the firm to lessen reliance on correspondent banking and minimize the time on settlement. Therefore, Western Union will incur reduced operating expenses and enhanced reliability.
The firm expects to compete directly with fintech companies using crypto rails. Experts warn that this move can influence wider market liquidity. They note that stablecoins often act as settlement assets on many platforms. Western Union’s 400,000 outlets may also create new paths for converting digital assets to cash, which can support liquidation in strained markets.