Breaking: $2.6B Western Union Announces Plans for Solana-Powered Stablecoin by 2026

Western Union has announced plans to launch a U.S. dollar-backed stablecoin built on the Solana blockchain. This follows trends from other major institutions since the GENIUS Act was enacted.

Western Union Reveals Solana-Backed Stablecoin Plans

According to a WSJ report, Western Union plans to launch a new stablecoin, the U.S. Dollar Payment Token (USDPT). The only federally chartered cryptocurrency bank in the US, Anchorage Digital Bank, will issue the coin.

The company expects to roll out the token in the first half of 2026. With the help of its partner exchanges, its 100 million customers will be able to send and receive money instantly. By tapping into Solana’s high-speed blockchain infrastructure, the firm aims to slash transaction costs and settlement times for international transfers.

“We are a long way from the telegraph, but the idea of connecting people through technology remains our core mission,” said Devin McGranahan, President and CEO of Western Union. “Moving into digital assets and stablecoins is simply the next chapter in that journey.”

The bank currently processes hundreds of billions of dollars annually. This means even modest adoption of its digital token could bring unprecedented liquidity to the stablecoin market.

The announcement from Western Union comes after several other similar actions by significant American companies investigating blockchain payments. Walmart and Amazon are reportedly creating their own stablecoins to reduce transaction costs and expedite international payments, according to reports that surfaced in June.

Meanwhile, Circle, the issuer of USD Coin (USDC), has surged more than 300% since going public earlier this year.

The company had already hinted at its stablecoin ambitions during its recent earnings call. Additionally, they disclosed ongoing blockchain pilots aimed at enhancing treasury operations and lowering dependency on the antiquated correspondent banking network, which presently hinders cross-border transactions.

Solana Blockchain Gains Global Traction

The network’s increasing power in institutional finance is reflected in the decision to expand on SOL.  Since the first Solana-staking ETF was approved in the United States, SOL, which is well-known for its cheap fees and quick transaction speeds, has seen a recent surge in capital.

According to Ryan Lee, Chief Analyst at Bitget, the ETF could attract between $3 billion and $6 billion in new investments within its first year. The product’s 5% passive yield feature has also boosted institutional confidence in Solana. This puts it in the same league as Bitcoin and Ethereum ETFs.

Adding to the momentum, Bitwise’s BSOL ETF recorded over $33 million in trading volume within hours of debut, according to Bloomberg analyst Eric Balchunas.