Western Union explains why a stablecoin makes financial sense

Western Union faces an expensive issue. Large sums pass through its worldwide payment system, yet some funds must remain unused in bank accounts while awaiting customer transfers.

The 175-year-old money transfer firm thinks stablecoins could offer a solution.

During a talk with BeInCrypto at Merge Madrid, Malcolm Clark, who leads digital assets at Western Union, outlined the reasoning behind the company's bet on its own stablecoin, USDPT.

“It’s expensive because we have to park capital on those correspondent banking layers.”

Western Union currently depends on pre-funded accounts spread across international banking systems. If settlements happen in real time via stablecoins, that capital could be freed up and operational expenses lowered.

That financial rationale underpins USDPT, which Western Union launched in May 2026, following its initial announcement in October 2025.

Issued by Anchorage Digital Bank on Solana, USDPT could enable Western Union to move funds around the clock.

What Does This Mean for Ordinary Western Union Customers?

Western Union also aims to bridge cryptocurrencies with its global cash network.

Working with infrastructure provider Rain and Visa, the company is creating payment services powered by stablecoins.

“The consumer can literally pay a small fee, change from crypto to fiat, and then walk into a Western Union store and exit with cash.”

Clark noted that the cash-out service reaches 160 markets.

The strategy gained traction after America’s GENIUS Act in July 2025, which established a federal regulatory framework for payment stablecoins.

Clark also mentioned the proposed CLARITY Act as another possible step toward blending stablecoins with traditional finance.

AI Payments Could Be the Next Battleground

Clark is more cautious about the growing hype around AI agents making payments.

“It feels like it’s the next buzzword that gets VCs to unlock their wallets and it’s exciting.”

Still, he sees real promise if agents operate within trusted permissions and can settle payments instantly.

“So you need a real-time, irrefutable payment rail that can be global as a single layer.”

Western Union also plans to accept other cryptocurrencies and convert them into USDPT.

For Clark, the typical customer cares little about the technology behind a transfer.

“If you go to the general user that’s not in these conferences and talk to them about stablecoin, they’re not interested, and they’re gonna look at you sideways and frankly they should.”