- In October, Western Union made the first announcement about the stablecoin, stating that it will be issued by Anchorage Digital Bank and based on Solana.
- Direct settlement and treasury use cases will be facilitated by banks and financial institution partners in key corridors, according to McGranahan.
As part of its crypto strategy, which also include its digital asset network and US dollar stable card, financial services behemoth Western Union is aiming to launch its new stablecoin in May.
Western Union president and CEO Devin McGranahan stated:
“Over the last few months, we’ve crossed an important threshold. It is no longer a question of if Western Union will be active in digital assets, it is now how fast can we scale.”
Banking on Stablecoin Growth
Their US dollar-backed stablecoin, USDPT, is the backbone of their plan. He also said that USDPT is almost ready to launch next month. Stablecoins have been used by an increasing number of conventional financial institutions. In a recent interview, Lamine Brahimi—co-founder of crypto custody provider Taurus—said that European banks and enterprises are aggressively seeking out infrastructure partners to facilitate the adoption of stablecoins.
In October, Western Union made the first announcement about the stablecoin, stating that it will be issued by Anchorage Digital Bank and based on Solana. Its goal is to integrate it with the digital asset network so that the token can be used by users without any hassle.
Direct settlement and treasury use cases will be facilitated by banks and financial institution partners in key corridors, according to McGranahan, while exchange partners will assist with access, conversion, and distribution of USDPT. The combination of these partnerships, he said, makes USDPT an essential asset for the platform’s ability to scale digital payments and settlement.
At now, the majority of the $320 billion stablecoin market capitalization is comprised of currencies denominated in US dollars. In terms of market capitalization, USDT by Tether is at over $189.7 billion, USDC by Circle is at $77.7 billion, and Sky Dollar is at $8.2 billion, as reported by the DeFi analytics portal DefiLlama.
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