Stablecoins Come to Money Transfers Via Western Union’s Stablecard – Digital Transactions

The Western Union Co. and payments-technology developer Rain have launched a digital wallet and credit card that can enable money transfers using stablecoins from a card-linked account. Called Stablecard, the product works with the stablecoin USDPT, also introduced Tuesday.

Stablecard is going live in 37 markets, according to Western Union, which says it plans to up that number to 60 by year’s end. In at least some of these markets, the product will be particularly useful as the local currency lacks stable value, the remittance company says. Stablecoins are cryptocurrency that reflect the value of a fiat currency, often the U.S. dpllar.

While the offer includes a digital wallet, the new coin can be added to other wallets such Apple Pay and Google Pay, according to Western Union, which says the wallet can also receive money transfers.

USDPT, or U.S. Dollar Payment Token, is pegged to the dollar, issued by Anchorage Digital Bank, and developed on the Solana blockchain by Western Union. As with most stablecoins, USDPT is backed by bank deposits and U.S. Treasury bills so the coins reflect the value of fiat money. Anchorage is a federally chartered U.S. crypto bank.

In launching the stablecoin and wallet, Western Union stresses what it sees as the utility stemming from the offer of two major payment networks. “By combining the stability of a dollar-backed digital asset with the scale of Western Union’s global network and Visa’s acceptance footprint, we’re giving consumers a new way to hold value, move money, and spend confidently across borders,” Western Union’s president and chief executive, Devin McGranahan, says in a statement.

Companies have in recent years found credit and debit cards linked to stablecoins and backed by a major network such as Visa or Mastercard to be a major strategy in winning acceptance of the digital currency among both consumers and merchants. Spending on card-backed stablecoins globally has more than doubled in the past year, according to Rain.