Western Union is preparing to roll out a stablecoin-backed prepaid card aimed squarely at countries struggling with runaway inflation, marking one of the clearest signs yet that the remittance giant has shifted from crypto skeptic to active participant in the digital asset economy.
According to Chief Financial Officer Matthew Cagwin, the company intends to debut the product in markets where local currencies are losing value so quickly that traditional cash remittances no longer reliably preserve purchasing power. Argentina, where inflation topped 200% last year, is among the key target markets highlighted by the firm.
The new card will be denominated in US dollars and backed by a stablecoin rather than local fiat. Funds sent by relatives abroad would arrive in a dollar value that is protected, at least in theory, from the severe depreciation affecting national currencies. Recipients could then spend directly with merchants or withdraw cash at Western Union locations, deciding when and how to convert into local money.
The initiative is built around the US Dollar Payment Token (USDPT), a stablecoin scheduled for launch in 2026. USDPT will be issued by Anchorage Digital and run on the Solana blockchain. Western Union plans to integrate this token into a broader digital asset ecosystem that includes on-ramps, off-ramps, and card-based payment rails for everyday transactions.
A crucial part of the strategy is Western Union’s partnership with Rain, which will help issue Visa-branded cards linked to stablecoins. Through this collaboration, customers holding digital assets in wallets connected to Rain’s platform will be able to convert those assets into local currency at Western Union branches, effectively turning a crypto balance into spendable cash without needing a traditional bank account.
Cagwin emphasized that the company is actively building infrastructure to reduce its dependence on the conventional banking system and speed up the movement of funds. By creating seamless pathways between stablecoins and fiat money, Western Union aims to shrink settlement times and make cross-border transfers more efficient, especially in volatile economies.
In practice, the prepaid cards are designed to function as a bridge between blockchain-based value and day-to-day financial life. A worker sending money home could choose to remit in USDPT, with the recipient automatically receiving a dollar-denominated balance on their card. From there, they could use the card at any merchant that accepts Visa, or cash out partially as needed. This model lets families hold value in dollars for as long as possible, hedging against local inflation, and only convert when it is necessary to pay bills or buy essentials.
This strategy represents a dramatic reversal from Western Union’s stance just a few years ago. For much of the past decade, the company dismissed cryptocurrencies as unsuitable for mainstream payments. In 2017, then–Chief Technology Officer David Thompson publicly questioned Bitcoin’s potential as a currency, arguing that crypto behaved more like a commodity and lacked the governance, compliance safeguards, and stability required for global money transfer operations.
The tone changed in late 2025, as global regulators brought more clarity to the rules surrounding digital assets and stablecoins. Chief Executive Officer Devin McGranahan later explained that Western Union’s earlier caution was driven by concerns around price volatility, regulatory uncertainty, and customer protection. Once clearer frameworks emerged and more mature infrastructure developed, the company saw a path to integrating digital assets in a controlled, compliant way.
The timing of Western Union’s pivot coincides with a broader wave of experimentation with stablecoins in emerging markets. Pakistan, for example, has announced plans to launch its first national stablecoin as part of a wider effort to integrate virtual assets into its financial system. Bilal Bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), has said the country is “definitely” moving forward with a stablecoin project.
Saqib has argued that a state-backed stablecoin could even serve as a tool to collateralize government debt, suggesting that digital representations of value can be woven directly into public finance. His stance is that Pakistan should be at the forefront of financial digital innovation rather than trailing behind, especially given its existing technological capabilities and growing grassroots adoption of digital tools.
In parallel, PVARA is developing frameworks for Central Bank Digital Currencies (CBDCs) while progressing on stablecoin rules. Earlier this year, Saqib unveiled Pakistan’s Strategic Bitcoin Reserve, signaling that the government views digital assets as part of a long-term national strategy rather than a passing trend. The country has also allocated 2,000 megawatts of electricity to support Bitcoin mining and AI-focused data centers, further entrenching crypto and digital infrastructure in its economic plans.
These moves in Pakistan and similar initiatives in other emerging markets underscore why Western Union’s new product is strategically significant. Stablecoin-based remittances are not just a new payment option; they are increasingly intersecting with national policy, financial inclusion drives, and sovereign digital currency experiments. For millions of people living with chronic inflation, stablecoins represent a practical alternative to holding rapidly depreciating cash at home.
From a user’s perspective, the main appeal of Western Union’s stablecoin card is predictability. A recipient who gets 100 dollars’ worth of stablecoins on their card knows that the nominal value is pegged to the dollar, not to a volatile local currency. While exchange rate fluctuations still matter at the moment of cash-out, the period between receiving funds and spending them becomes less risky. For households budgeting month to month in inflationary environments, this time buffer can be critical.
There are also potential benefits for senders. Traditional cross-border remittances can involve multiple intermediaries and settlement delays, particularly when banking networks are fragile or heavily regulated. Moving value via stablecoins and settling at the edge—at a Western Union branch or through a Visa network merchant—can compress these timelines and possibly reduce fees over time, provided the underlying blockchain infrastructure remains efficient.
However, the model raises questions as well. Stablecoins depend on robust issuers, transparent reserves, and strong governance to maintain their peg and avoid the crises that have plagued some digital assets in the past. Western Union’s choice to work with Anchorage Digital and to launch on Solana indicates a preference for institutional-grade partners and high-throughput networks, but trust will still need to be earned in each local market.
Regulatory oversight is another critical factor. Governments dealing with capital controls or currency crises may worry that dollar-pegged instruments could accelerate unofficial dollarization, undermining their ability to manage domestic monetary policy. Western Union will have to navigate differing national approaches, from supportive experimentation to cautious restriction, as it rolls out the stablecoin card across multiple jurisdictions.
At the same time, the product aligns with a broader shift in how remittances are being reimagined. Rather than simply funneling cash from one bank account to another, remittance providers are starting to deliver programmable, digital-native value that can plug into a wider range of financial services: savings tools, micro-lending platforms, cross-border bill payments, or even yield-bearing products built on blockchain infrastructure. A prepaid card tied to a stablecoin is an early, low-friction expression of this trend.
If successful, Western Union’s initiative could also put competitive pressure on both traditional banks and newer fintech apps. Local banks in high-inflation countries often struggle to provide instruments that preserve value, while mobile money and neobanks tend to be constrained by domestic currency risk. A remittance channel that effectively delivers digital dollars usable through a familiar card interface could become a compelling alternative, especially in regions where trust in local financial institutions is fragile.
For policymakers, the rise of these products forces a reassessment of how cross-border money flows, digital currencies, and consumer protection interact. Clear and harmonized regulations, particularly around stablecoin reserve backing, anti–money laundering controls, and data privacy, will shape how far and how fast solutions like Western Union’s card can scale.
Ultimately, Western Union’s stablecoin-backed prepaid card illustrates how global payment incumbents are being pushed to evolve. For years, the company watched crypto from the sidelines, questioning its practicality as money. Now, under pressure from inflation, regulatory modernization, and the growing demand for digital dollars, it is weaving stablecoins directly into its core remittance business—turning abstract blockchain technology into a tangible tool for families trying to hold onto the value of every dollar they receive.