Western Union has partnered with stablecoin infrastructure provider Rain to launch Stablecard. The product combines a digital wallet with a Visa-branded card. It lets customers hold and spend a US dollar-backed stablecoin across 37 markets.
The company announced the rollout on August 4. Stablecard supports USDPT, a US dollar-backed stablecoin issued by Anchorage Digital Bank on Solana. Western Union aims to expand the service to more than 60 markets by year-end.
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Why Western Union Is Targeting Global Remittance Users
Customers can receive international remittance payments directly into a USDPT wallet. They may then send those funds to compatible crypto wallets. Transfers to supported cryptocurrency exchanges are also available through the wallet.
Cardholders can spend their USDPT balances anywhere that Visa is accepted. Stablecard also works with Apple Pay for mobile payments. Google Pay support gives users another option for digital purchases.
Western Union is targeting remittance recipients and consumers in countries with volatile local currencies. The wallet lets them hold savings in a dollar-backed asset. They can access those balances through established payment services.
Western Union unveiled USDPT in May under its wider digital asset strategy. It said the token was designed to align with the recently enacted GENIUS Act. That US law sets federal rules for payment stablecoin issuance and oversight.
How USDPT and MGUSD Expand Digital Remittances
Bybit added support for USDPT trading and transfers in June. The exchange deal gave holders another channel for accessing the token. Western Union has used such partnerships to expand the stablecoin’s ecosystem.
Stablecoins are gaining traction in cross-border payments, especially in Africa and South America. Users in those regions often seek faster and cheaper remittance options. The trend has pushed Western Union and other established money-transfer companies toward digital assets.
MoneyGram also launched MGUSD, a US dollar-stablecoin. The money transfer company issued the stablecoin on the Stellar blockchain network. MGUSD is linked with the MoneyGram app using a self-custodial wallet.
Fiat Conversions Limit Stablecoin Remittances
Customers can hold dollar-denominated balances in that wallet. They can send funds internationally in any part of the world. The customers can also have the stablecoin converted into fiat currency if required.
However, stablecoins do not always improve remittance performance. In a recent study by the Bank of Italy, researchers compared stablecoins and other methods of money transfers. It found no consistent advantage in either transaction costs or settlement speed.
Researchers traced much of the remaining friction to fiat on-ramps and off-ramps. These services convert cash or bank deposits into digital assets. They also change stablecoins back into fiat currencies, creating most costs and delays.
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