Telegraph Pioneer Launches Dollar Stablecoin

Western Union announced October 28 plans to launch the U.S. Dollar Payment Token (USDPT) on the Solana blockchain in the first half of 2026, with issuance by Anchorage Digital Bank. For a company that once transmitted messages via telegraph, the move marks a stark admission: legacy remittance infrastructure can't compete with blockchain-powered payment rails.

The Numbers Tell the Story

Western Union generated $4.20 billion in revenue during 2024, down 3% year-over-year. Shares fell roughly 10% through the announcement date, while markets rewarded blockchain-based competitors.

The contrast is brutal. Circle Internet Group surged over 300% since its June IPO, showing where investors see the future of cross-border payments. Western Union's stock performance reflects a simple truth: correspondent banking networks are losing ground to stablecoin infrastructure.

CEO Devin McGranahan framed the pivot historically: "We are a long way from the telegraph, but the idea of connecting people and using technology to do it is deeply in our roots for 175 years. Moving into digital assets and stablecoins is just the next chapter."

Two Strategies, One Goal

Western Union isn't just launching a stablecoin—it's building two complementary systems:

USDPT Stablecoin: Dollar-backed token on Solana, issued by Anchorage Digital, targeting Western Union's 100 million customers for international transfers.

Digital Asset Network: Infrastructure letting users convert digital assets to cash at over 400,000 retail locations across 200+ countries.

McGranahan was explicit about the economics: "Western Union's USDPT will allow us to own the economics linked to stablecoins."

That word—"own"—matters. PayPal and Circle control stablecoin issuance, earning float income on reserves, transaction fees, and platform revenue. Western Union historically just facilitated transfers using other companies' rails, capturing transaction fees but missing the bigger prize: reserve economics and token issuance benefits.

Why Solana

Solana's selection came down to performance—scalability, low costs, and speed designed for high-volume financial applications. Transactions settle in seconds with sub-cent fees, making small remittances economically viable.

Anchorage Digital handles issuance, bringing federal regulatory approval and GENIUS Act compliance for reserve management. As the only crypto firm with a federal bank charter, Anchorage provides institutional credibility that Western Union needs for partnerships.

USDPT will be accessible through partner exchanges, positioning it as open infrastructure rather than a closed proprietary system.

Playing Catch-Up

Western Union is late to the stablecoin race:

MoneyGram's platform runs on Circle's USDC via Stellar blockchain, partnering with Crossmint.

PayPal's stablecoin hit $2.7 billion circulation since launching in 2023.

Stripe is building its own stablecoin infrastructure with a dedicated payments blockchain.

The delay reflects earlier caution. Western Union experimented with Ripple starting in 2018 for cross-border transfers, testing blockchain without committing to production. That hesitation now looks expensive.

McGranahan first signaled stablecoin interest in July 2025 after GENIUS Act passage, citing regulatory clarity as the enabling factor.

The Physical Advantage

Western Union's Digital Asset Network tackles "the last mile of the crypto journey"—converting digital assets to physical cash through global retail locations.

This is Western Union's ace. Circle, PayPal, and blockchain platforms excel at digital-to-digital transfers. But Western Union operates 600,000 agent locations where people can get cash without bank accounts.

Users send tokens from wallets and collect physical currency at retail locations—no bank account required.

In emerging markets where smartphones outnumber bank accounts, this hybrid model could prove decisive. Blockchain for transmission, retail for receipt.

New Revenue Streams

Western Union expects revenue from multiple sources: issuance economics, exchange spreads, transaction fees, and agent commissions.

Traditional Western Union revenue came from transaction fees, FX spreads, and agent commissions. USDPT adds entirely new income:

• Float income on dollar reserves backing tokens

• Token issuance and redemption fees

• On-ramp/off-ramp conversion margins

• Potential licensing to third-party platforms

Unlike Visa and Stripe, which provide neutral infrastructure, Western Union captures both infrastructure fees and asset economics.

Market Momentum

Stablecoin market capitalization reached roughly $312 billion, up nearly 50% in 2025. Standard Chartered projects $750 billion by end of 2026.

Stablecoin payment volumes hit $19.4 billion year-to-date in 2025, proving utility beyond crypto trading.

Western Union's scale could accelerate adoption significantly. The company serves 100 million customers moving hundreds of billions annually. Even capturing a fraction of that volume would make USDPT a major stablecoin platform.

Regulatory Tailwinds

The GENIUS Act, signed in July 2025, established clear frameworks for stablecoin issuance, mandating reserve backing with cash, short-term Treasuries, and similar safe assets.

McGranahan credited regulatory clarity directly: "With Anchorage Digital as our regulated partner and Solana's blockchain technology, we're taking a meaningful step toward faster, more efficient, and more inclusive payments."

For a publicly traded company under federal oversight, GENIUS Act frameworks remove the legal uncertainty that previously made stablecoin issuance too risky.

Execution Challenges

Customers need to learn wallets, understand stablecoins, and trust new products. Western Union must also navigate divergent regulations across markets—Europe's MiCA regime, Asian restrictions, and varying local frameworks.

Western Union's customer base prioritizes simplicity over technical sophistication. Stablecoins require understanding private keys, wallet security, and blockchain transactions—concepts many current users don't know.

The Digital Asset Network helps by offering immediate conversion to cash at retail locations. Recipients can bypass wallet complexity entirely. But senders still need to navigate digital asset infrastructure.

Success Factors

Three questions determine whether USDPT works:

Adoption: Can Western Union migrate existing customers to USDPT, or will it primarily attract new digital-native users?

Economics: Will Western Union realize anticipated revenue from issuance and reserves, or will competition compress margins?

Regulation: Can the company operate USDPT across jurisdictions with conflicting digital asset rules?

Markets reacted cautiously—shares jumped 6.5% on announcement day but remained down roughly 10% year-to-date. Investors see strategic necessity without fully pricing successful execution.

What It Means

Solana traded near $194 following the announcement, validating the blockchain's positioning for institutional payment infrastructure. Western Union's selection is a meaningful endorsement.

The announcement at Money20/20 2025 drew attention from both traditional payments and crypto industries as the collision between old and new financial infrastructure accelerates.

For Western Union, USDPT acknowledges that correspondent banking can't match blockchain settlement speed and cost. The question isn't whether to adopt stablecoin infrastructure—it's whether adoption comes soon enough to prevent permanent market share loss to digital competitors.