Solana News Today: Western Union Makes a 164-Year Transition from Telegraph to Blockchain-Based Digital Remittances

Western Union (NYSE: WU) is preparing to shake up the international remittance industry by introducing its Solana-powered stablecoin, the U.S. Dollar Payment Token (USDPT), signaling a significant shift toward digital currencies. The company revealed it will distribute USDPT via Anchorage Digital Bank, utilizing Solana’s robust blockchain to facilitate quicker and more affordable global payments, as reported by a

. This stablecoin, which maintains a 1:1 value with the U.S. dollar, is slated for release in the first half of 2026. Customers will be able to obtain it through affiliated exchanges and Union’s extensive network, which serves 100 million users worldwide, according to .

This project, part of Western Union’s Digital Asset Network, is designed to connect digital and traditional financial systems by offering smooth conversion between USDPT and cash at retail outlets globally, the Morningstar report highlighted. CEO Devin McGranahan described this as a “new era” for the company, which has a legacy dating back to the first transcontinental telegraph in 1861. “We are dedicated to adopting new technologies to better serve our clients,” McGranahan stated, adding that USDPT will enable

to “capture the full value” of stablecoin operations, as noted in the Coinotag report.

By choosing Solana—a blockchain recognized for its ability to handle thousands of transactions per second at very low fees—Western Union is positioning itself to rival companies like PayPal and MoneyGram, both of which have already entered the stablecoin space, according to the Coinotag report. This move comes as stablecoin usage surges, fueled by clearer regulations and a growing need for efficiency. Following the passage of the Genius Act in July, which requires stablecoins to be backed by highly liquid assets such as Treasury bills, monthly stablecoin transactions have soared 70% to $10.2 billion, based on data from

.

Currently, business-to-business (B2B) payments make up the majority of stablecoin activity, reaching $6.4 billion in August—almost two-thirds of the total—and representing a 113% rise since February, according to

. More companies are turning to stablecoins to avoid the delays of conventional banking, which often require several intermediary banks. “Businesses are frustrated with outdated procedures,” said Andrew Van Aken, a data scientist at Artemis, pointing out that the average stablecoin transaction now exceeds $250,000, as reported by Invezz.

Western Union’s entry into the stablecoin market also reflects larger changes in the payments industry. Zelle, a leading U.S. payment platform, recently revealed plans to use stablecoins for international transfers, while Kyrgyzstan has introduced its own stablecoin, KGST, tied to the som and built on

, according to . However, Western Union’s vast scale—processing $150 billion in remittances annually—gives it a distinct advantage in driving adoption. Experts predict stablecoins could account for 10% of the $800 billion global remittance sector by 2027, as per .

Ensuring regulatory compliance is central to the design of USDPT. By collaborating with Anchorage Digital, a federally regulated bank, Western Union guarantees compliance with U.S. financial regulations, reducing risks related to instability or illegal activities, the Morningstar report explained. This strategy is consistent with the Genius Act’s standards and stands in contrast to controversial stablecoin initiatives like World Liberty Financial’s USD1, which has faced criticism over conflicts of interest.

The introduction of this stablecoin could transform remittance services, especially in regions such as Asia, Africa, and Latin America, where transaction fees average 6.5% and remittances can represent up to a quarter of GDP in some nations, the Coinotag report stated. By potentially cutting costs by as much as half, USDPT aims to reduce transfer times from several days to just minutes, offering significant benefits to migrant workers and those without access to banking, according to the Phemex analysis.

As the remittance landscape changes, Western Union’s adoption of stablecoins highlights the shift of cryptocurrencies from a specialized niche to mainstream finance. With USDPT prioritizing practical use over speculation, the company is well-positioned to take advantage of a sector ready for innovation.