Western Union is opening a new page in its crypto strategy with its new “stable card” initiative, which aims to protect the purchasing power of users in countries with high inflation. This step of the company shows not only its transformation in the field of cross-border payments, but also its move towards a more comprehensive road map on digital assets.
Digital Armor Against Inflation in Latin America
Speaking at the UBS Global Technology and AI conference, Western Union CFO Matthew Cagwin emphasized that the depreciation of remittances has reached dramatic levels, especially in countries experiencing hyperinflation such as Argentina. In a country where annual inflation climbs to the 250-300% range, a family’s $500 sent from the USA can even drop to $300 after a month. For this reason, the company aims to provide dollar-fixed value protection to users with its “stable card”, which is designed as an upper version of its existing prepaid cards.
According to Cagwin, this card will provide great security, especially for immigrants who regularly send money to their families. This stablecoin-based structure aims to preserve the value of the money when it is sent, at least in the short term.
Own Coin from Western Union: WUUSD Sign
Western Union is focused not only on the card, but also on its own digital currency. Cagwin stated that their wide distribution network in 200 countries makes the company a natural advantageous player, and said that if they launch their own crypto assets, there will be a significant demand in developing countries.
Digital Asset Network (DAN), one of the most important parts of the company’s digital asset roadmap, is preparing to come into operation in the first half of 2025. Through this network, Western Union will strengthen the bridge between crypto and traditional finance by connecting to four different on-ramp and off-ramp providers.
On the other hand, the company confirmed that it will use the Solana blockchain in its new stablecoin consensus system. US Dollar Payment Token (USDPT), which will be at the center of the system, will be released in the first half of 2026. Additionally, Western Union has applied for a trademark for “WUUSD”, a sign that it is building a comprehensive crypto ecosystem, including a wallet, transaction services, and stablecoin payment system.
A Similar Development: MoneyGram Is Also in the Race for Digitalization
This aggressive crypto move by Western Union is part of a broader shift in which money transfer giants are turning to blockchain technology. In recent months, MoneyGram also expanded its digital wallet and announced that USDC-based transfers can be used in more than 100 countries. The competition between the two companies could expand low-cost and fast digital money transfers on a global scale.
Western Union’s move into the stablecoin ecosystem shows that traditional financial institutions can no longer ignore blockchain technology. Solutions developed for high-inflation economies prove that crypto has become not just an investment tool but a real economic recovery mechanism. However, whether this transformation will be successful will depend on how companies manage their regulatory processes and how quickly they can gain user trust.
