Western Union Launches Stablecard With Visa and Rain

Western Union has partnered with stablecoin infrastructure provider Rain to introduce Stablecard, a digital wallet and Visa-branded card that allows users to hold and spend a US dollar-backed stablecoin. The company said on Wednesday that Stablecard supports USDPT, a dollar-pegged stablecoin issued by Anchorage Digital Bank on the Solana blockchain. Users can hold, receive, transfer and spend USDPT directly through the service.

Stablecard is initially available in 37 markets, with Western Union planning to expand to more than 60 markets by the end of the year. Users can receive Western Union transfers directly into a USDPT wallet, send funds to compatible crypto wallets and exchanges, and spend their balance wherever Visa is accepted, including through Apple Pay and Google Pay.

The launch represents a significant expansion of Western Union’s blockchain strategy as stablecoins become increasingly relevant for cross-border payments and remittances.

Stablecard targets remittance users and dollar savings

The product is particularly aimed at remittance recipients and consumers in countries where local currencies may experience high volatility. By allowing users to hold funds in a dollar-backed digital asset, Stablecard provides an alternative way to preserve value while still enabling everyday spending through existing card payment networks.

Western Union first introduced USDPT in May as part of its broader digital asset strategy. The company described the stablecoin as being designed to align with the regulatory framework created by the GENIUS Act, the recently enacted US law governing payment stablecoins. The USDPT ecosystem has also expanded through exchange integrations. In June, Bybit added support for trading and transferring the token.

Stablecoins expand across global money transfers

Stablecoins are playing an increasingly important role in international payments as users search for faster and potentially cheaper alternatives to traditional remittance channels, particularly across Africa and South America.

The trend has encouraged major money transfer companies to expand into blockchain-based services. Western Union competitor MoneyGram recently launched MGUSD, a US dollar-backed stablecoin on the Stellar network. The token integrates with the MoneyGram app through a self-custodial wallet, allowing users to hold dollar balances, transfer funds internationally and convert them into local currencies when needed.

However, stablecoins do not always provide a clear advantage over traditional remittance systems. A recent Bank of Italy study found that stablecoin-based transfers did not consistently outperform conventional payment methods on either cost or settlement speed. The researchers identified fiat on- and off-ramps as a major source of friction, with conversions between cash, bank deposits and digital assets accounting for much of the remaining cost and delay in stablecoin-based remittances.

Sources:

https://www.gadgets360.com/cryptocurrency/news/western-union-introduces-stablecoin-transfers-via-visa-network-and-stablecard-crypto-adoption-crypto-payments-wallets-11875268

https://cointelegraph.com/news/western-union-stablecard-stablecoin-remittances-visa