Western Union is launching USDPT, a stablecoin on Solana, to enhance global payments. This initiative blends traditional finance with blockchain efficiency. For instance, it targets faster cross-border transfers. Tony Edward (Thinking Crypto) interviews Malcolm Clarke, Western Union’s VP of Digital Assets. They discuss the project’s details and implications. Watch the full video here: Western Union Stablecoin Interview.
Western Union is Launching a Stablecoin on Solana… Here's Why!
— Tony Edward (Thinking Crypto Podcast) (@thinkingcrypto) March 5, 2026
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Malcolm Clarke, VP of Digital Assets at Western Union, joined me to discuss why Western Union is building its own stablecoin, USDPT, on the Solana blockchain.
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– Building… pic.twitter.com/wBOimivFju
Understanding USDPT: Design and Functionality
USDPT serves as a U.S. Dollar Payment Token for secure transfers. Western Union backs it 1:1 with USD reserves. Users convert fiat to USDPT for instant settlements. Receivers access funds at 400,000 global locations. Moreover, it supports digital cards in underbanked regions. Malcolm Clarke explains, “The same coin that’s going to drive my treasury is going to drive my consumerization.” This dual use boosts versatility. Tony Edward adds, “Paying me in a coin or value that I know is worth one dollar to one dollar that I can exit is actually valuable.” Partnerships with Anchorage Digital ensure compliance. Overall, USDPT handles remittances worth $132.18 billion in 2026.
If you take the construct that a stablecoin is the speed of global movement and it provides that one-to-one security, then everything is lining up well to say yes, this is going to be the payment and how payments in the future are going to move.
Malcolm Clarke, Western Union’s VP of Digital Assets
Reasons Behind Choosing Solana
Solana provides high speed and low costs for payments. It achieves sub-second finality and over 65,000 TPS. Western Union evaluated chains for fit and scalability. For example, Solana’s privacy extensions secure transactions. However, it outperforms others in throughput. Malcolm states, “We selected Solana. So we looked at a couple of things, when you’re selecting technology and you’re an institution, especially a public one, you go through a process of technology fit, partner fit, roadmap.” Tony responds by noting real-world needs. This choice cuts fees to under a cent. Additionally, developer support accelerates adoption. Therefore, Solana aligns with Western Union’s goals.
Key Benefits for Liquidity and Capital
USDPT reduces capital tied in traditional accounts. Banks park billions in nostro setups for settlements. Instead, on-chain moves free up funds instantly. For instance, it enables 24/7 liquidity globally. This saves costs in the $879.24 billion remittance market. Malcolm highlights, “The treasury use case for our coin is actually, it’s fairly obvious. So it says if I can move liquidity, you know, seven days a week, 24 seven until the places I need it, it actually changes my economics.” Tony agrees on its value for users. Moreover, it lowers FX fees significantly. Recipients get cashback through usage. Overall, these features transform treasury management.
Navigating Regulations and Compliance
Western Union aligns USDPT with U.S. laws like the Genius Act. Anchorage Digital Bank issues tokens under OCC rules. Reserves undergo regular audits for transparency. Users benefit from regulated stability. However, this avoids securities debates. Malcolm notes, “Genius Act was a catalyst for us to accelerate this stuff versus if it didn’t exist, you’re always wondering what the regulator might do.” Tony mentions the stablecoin yield debate. This framework builds trust worldwide. Additionally, it fits money transmission licenses. Therefore, compliance drives safe innovation.
Future Implications for Payments and Tokenization
USDPT sets the stage for tokenized assets. It enables on-chain bonds and real estate. Payments evolve to 24/7 operations. Remittances grow at 9.4% CAGR to 2034. Moreover, multi-chain support expands reach. Malcolm predicts, “If you take the construct that a stable coin is the speed of global movement and it provides that one-to-one security, then everything is lining up well to say yes, this is going to be the payment and how payments in the future are going to move.” Tony adds, “The race is on, it seems like, with even Western unions, competitors, banks, different payment companies, everyone’s trying to create their own stablecoin.” Western Union aims for multi-currency options. This shift bridges fiat and crypto. Watch for launches in early 2026.
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