Web3 Transformation of Global Remittance Giant Western Union Launches US Dollar Stablecoin USDPT

Blockchain innovation layout of Western Union

Western Union, a financial company with a 170-year history, is leveraging blockchain technology to address the pain points of cross-border remittances. In the past, international remittances often incurred high costs and slow settlements due to complex intermediaries. Now, they are issuing the dollar stablecoin USDP through the Solana blockchain, aiming to provide fast and low-cost cross-border payment services to over 100 million users worldwide.

The technical design and compliance assurance of USDP.

USDPT is issued and custodied by Anchorage Digital Bank, a federally regulated cryptocurrency bank, which ensures the transparency of its assets and legal support. Operating on Solana, it leverages the chain’s efficiency and low fee advantages to achieve second-level transactions, significantly improving settlement speed and reducing remittance costs.

Redefining remittance costs and efficiency

Traditional remittance services have an average fee of 5% to over 10%, and the settlement process is cumbersome. USDPT, on the other hand, settles directly on-chain, effectively eliminating intermediaries and reducing transaction costs to nearly zero, which brings tangible economic benefits to users and small businesses in developing countries, and also helps bridge the financial gap.

Western Union’s Web3 payment ecosystem layout

The Western Union plan deploys cryptocurrency wallet and fiat currency exchange services at over 400,000 locations worldwide, allowing users without a cryptocurrency background to easily exchange and use USDP, directly converting local currency and participating in on-chain payments, bridging on-chain and off-chain capital flows, and creating a unique all-encompassing Web3 payment platform.

From traditional remittance companies to the cornerstone of blockchain

USDP is not only a stablecoin but also symbolizes the transformation of Western Union’s corporate positioning. They hope to leverage blockchain to shorten settlement times, reduce costs, and attract young digital users, transforming from a mere remittance business into an important role in Web3 financial infrastructure, becoming a two-way bridge between the on-chain and fiat worlds.

Summary

In the global financial digitization process, the popularization of on-chain settlement will be one of the main narratives of the next decade. The entry of Western Union is not only a confirmation of the feasibility of blockchain payments but also a signal: Web3 is no longer just a stage for startups.