Western Union, the NYSE-listed remittance company that operates in more than 200 countries, is launching US Dollar Payment Token (USDPT), a dollar-backed stablecoin set to debut on the Solana blockchain, in 2026.
CEO Devin McGranahan announced the move on Tuesday during a panel discussion at the Money20/20 fintech conference in Las Vegas, Nevada, US, declaring that stablecoins are “the next evolution” of how remittances will move around the world.
Western Union powers remittances across 50 African countries, through a network of banks and local money collection agents.
Launching a stablecoin positions the remittance giant at the front line of a new contest for Africa’s $95 billion remittance market, where fintech startups and crypto-native platforms are already using dollar-backed tokens to bypass traditional rails.
According to its 2024 annual report, Western Union moved $102.9 billion in cross-border payments, with the Middle East, Africa, and South Asia (MEASA) region accounting for 18% of all consumer money transfers—about $18.5 billion.
The company reported a total revenue of $3.8 billion for the year, down slightly from $4.2 billion in 2023, most of which came from transaction fees. Around $665 million of that revenue came from the MEASA region.
While Western Union doesn’t name Africa as a standalone market in its reports, it’s reasonable to assume the continent contributes a meaningful share of those figures.
The company has previously described Sub-Saharan Africa, particularly Nigeria, Kenya, and South Africa, as “strategically important,” ranking behind the United Arab Emirates and Saudi Arabia, its largest MEASA markets.
Remittance inflows to Africa reached $95 billion in 2024, according to the Institute for Security Studies (ISS), a research-driven NGO.
For Western Union, Africa is a smaller but strategically vital frontier within its global network, where cash pickups still dominate but digital channels are growing fast.
The company’s latest filings show that MEASA’s share of consumer transfers slipped to 16% in Q3 2025, partly due to disruptions in Iraq, but the company continues to highlight long-term opportunities tied to digital expansion and compliance-led innovation.
That’s where USDPT fits neatly into the playbook.
“If you are Western Union, and you are already moving $100 billion a year across borders, picking a partner that does that fast, efficiently, stable, and secure is really important,” said McGranahan. “So we went and looked at most of the other alternatives and came to the conclusion that for an institutional use case like ours, the Solana blockchain was the right choice for us.”
The launch of a dollar-backed stablecoin by the world’s most recognisable remittance brand is more than just a blockchain experiment; it could fundamentally reshape how people receive and hold money.
Western Union has deep distribution on the continent, through banks, mobile money operators (MMOs), and agent networks, and integrating stablecoins into that infrastructure could allow users in Africa to receive funds directly into digital wallets pegged to the dollar, instead of relying on cash agents or slow bank settlements.
Stablecoins appeal to users familiar with digital assets. In Nigeria, South Africa, Kenya, and Ethiopia, stablecoins are already used to hedge against currency volatility, inflation, and capital controls.
Millions send or save in dollar-backed USDT or USDC to protect value. Western Union’s USDPT, issued through the federally regulated Anchorage Digital Bank, brings that same behaviour a corporate stamp of legitimacy and access to institutional rails.
If Western Union moves just $1 billion of African remittances through USDPT, which is not overplayed because Western Union’s stablecoin will have a closed-loop utility, it could become one of the most widely held regulated stablecoins in the Global South.
Read Also: Tanzania restricts internet as citizens vote in general election
Users would benefit from faster transfers and lower costs, while Western Union could turn remittance liquidity into interest-bearing stablecoin reserves, unlocking a new income stream.
The move revives the debate over dollarisation in African economies. Increased reliance on dollar-backed assets for remittances could weaken local currencies and monetary sovereignty.
Cash dollarisation has been happening for decades, and crypto dollarisation follows the same pattern.
Stablecoins change the format, not the exposure, digitising dollars already sent and making them easier to store, transfer, and use within digital ecosystems.
That convenience could drive a subtle shift from “cash dollarisation” to “crypto dollarisation,” where value increasingly circulates as digital tokens outside traditional banking channels.
African regulators, Rwanda, Botswana, South Africa, Ghana, Egypt, Morocco, and Uganda, already experimenting with central bank digital currencies (CBDCs), will take a cautious but pragmatic stance.
The difference this time is that Western Union’s model is fully regulated and traceable, built on Anchorage’s compliance-grade infrastructure, which could make it easier for authorities to tolerate, if not endorse, its use..
Leave a comment and follow us on social media for more tips:
- Facebook: Today Africa
- Instagram: Today Africa
- Twitter: Today Africa
- LinkedIn: Today Africa
- YouTube: Today Africa Studio
