Western Union to issue USDPT stablecoin on Solana and launch USD-pegged prepaid card
Western Union is developing a USD-pegged prepaid “stable card” and plans to issue a USD-backed stablecoin named USDPT on Solana to protect remittances in high-inflation markets. Announced by CFO Matthew Cagwin at the UBS Global Technology and AI Conference, the card lets users hold dollar-denominated value instead of rapidly depreciating local currencies. Western Union’s Digital Asset Network (DAN), a fiat-crypto bridge connecting service providers, is expected to launch in early 2025 to enable smoother currency exchange; USDPT is targeted for release in the first half of 2026 and will be distributed via exchange partners. The move follows broader sector momentum: PayPal’s PYUSD and Ripple’s RLUSD have seen sizable supplies on-chain, and industry players are building stablecoin clearing and rails. Regulators and institutions, including the IMF, warn issuer-backed dollar stablecoins could cause capital outflows from emerging markets and centralize trust in issuers rather than code. For traders: this ties a major legacy remittance operator to Solana, likely increasing on-chain dollar-denominated liquidity and potential demand for SOL and stablecoin trading pairs. Key trading considerations include shifts in stablecoin flows toward consumer-focused chains, liquidity migration on exchanges, increased fiat-crypto on/off-ramp activity, and regulatory/macro risk that could affect issuer-backed stablecoin liquidity and sentiment.
Bullish
The announcement is bullish for Solana (SOL) and on-chain USD stablecoin demand. Western Union — a major legacy remittance operator — committing to issue USDPT on Solana and to distribute a USD-pegged prepaid card creates a new, potentially large source of retail and cross-border stablecoin flows. Near-term effects likely include increased SOL demand for network fees and staking interest from greater transaction volume, and higher stablecoin liquidity and trading volume across exchanges that list USDPT. The Digital Asset Network (DAN) and planned exchange distribution should boost on/off-ramp activity, which typically enhances market depth and trading opportunities. However, risks tempering upside include regulatory scrutiny of issuer-backed stablecoins, IMF and local-government concerns about capital flight from emerging markets, and the timeline (USDPT is targeted for H1 2026) which delays material supply and trading impact. In summary: expect positive price pressure and liquidity tailwinds for SOL and stablecoin markets over the medium term if USDPT adoption grows, but monitor regulatory developments and issuer credibility that could limit or reverse gains.