Western Union joins the stablecoin party, but the cashier is still fiat 🎉

Western Union has launched Stablecard in partnership with stablecoin infrastructure provider Rain, a digital wallet paired with a Visa-branded card that lets users hold and spend USDPT, a US dollar-backed stablecoin issued by Anchorage Digital Bank on the Solana blockchain. The product, announced Wednesday, allows customers to receive Western Union money transfers directly into a USDPT balance, transfer funds to compatible crypto wallets and exchanges, and spend at any merchant that accepts Visa, including through Apple Pay and Google Pay.

Stablecard went live in 37 markets, with Western Union targeting availability in more than 60 markets by the end of the year. The launch is aimed at remittance recipients and consumers in countries with volatile local currencies, giving them a way to hold savings in a dollar-backed digital asset while transacting through existing payment networks. Western Union unveiled USDPT in May as part of its broader digital asset strategy, positioning the token as compliant with the framework established under the GENIUS Act, the US law that sets federal rules for the issuance and oversight of payment stablecoins. Bybit added support for USDPT trading and transfers in June.

The move reflects stablecoins' deepening role in cross-border payments, particularly in Africa and South America, where users are seeking faster and lower-cost alternatives to traditional remittance services. Western Union rival MoneyGram recently introduced MGUSD, a US dollar-pegged stablecoin on the Stellar network designed to integrate with the MoneyGram app through a self-custodial wallet, allowing users to hold dollar-denominated balances, send funds globally and convert them into local currencies when needed.

Stablecoins are not a universal solution for remittances. A recent Bank of Italy study found that stablecoin-based remittances did not consistently outperform traditional payment channels on cost or speed. Researchers attributed much of the remaining friction to fiat on- and off-ramps, where conversions between bank deposits, cash and digital assets accounted for most transaction costs and settlement delays. Mastercard separately expanded support for USDC, PYUSD and RLUSD stablecoin settlement, and US and UK officials reaffirmed support for stablecoins and tokenization in joint financial regulation talks.