Western Union Launches Stablecoin to Dominate Africa’s $95B Remittance Market
3 min read
Western Union is preparing to shake up Africa’s $95 billion remittance market with the launch of its first stablecoin, the US Dollar Payment Token (USDPT), set to debut on the Solana blockchain in 2026.
The announcement came from CEO Devin McGranahan during a panel session at the Money20/20 fintech conference in Las Vegas, where he described stablecoins as “the next evolution” in cross-border money movement.
With operations in over 200 countries and 50 African markets, Western Union is positioning USDPT as a digital layer on top of its global remittance infrastructure. The goal is simple cut costs, speed up transfers, and strengthen its grip in regions where fintech and crypto-native challengers are rapidly gaining ground.
According to its 2024 annual report, Western Union processed $102.9 billion in cross-border payments, with the Middle East, Africa, and South Asia (MEASA) contributing about $18.5 billion, or 18% of all consumer transfers. The company’s total revenue stood at $3.8 billion, slightly down from $4.2 billion in 2023, while MEASA accounted for $665 million of that figure.
Africa remains a crucial part of Western Union’s growth strategy. The company has long identified Nigeria, Kenya, and South Africa as “strategically important” markets, where remittances are lifelines for millions of households. The continent’s $95 billion remittance inflows in 2024 highlight both the scale of opportunity and the pressure to modernize.
“If you are Western Union, and you are already moving $100 billion a year across borders, picking a partner that does that fast, efficiently, stable, and secure is really important,” said McGranahan. “We went and looked at most of the other alternatives and came to the conclusion that Solana was the right choice for us.”
Anchored on Solana’s blockchain and backed by Anchorage Digital Bank, USDPT will offer a fully regulated, dollar-pegged payment instrument. Users in Africa could soon receive funds directly into digital wallets linked to Western Union’s network, bypassing cash agents and legacy banking delays.
Stablecoins are already popular across Africa. In Nigeria, Kenya, South Africa, and Ethiopia, digital dollars mainly USDT and USDC serve as a hedge against inflation and currency volatility. Western Union’s entry brings regulatory credibility to a behaviour millions have already adopted informally.
If just $1 billion of Western Union’s African remittances move through USDPT, it could instantly become one of the most widely used regulated stablecoins in the Global South. For users, the benefits would include faster transfers and lower fees. For Western Union, it unlocks a new revenue stream from the liquidity parked in stablecoin reserves.
But the implications stretch beyond finance. The launch could accelerate “crypto dollarisation,” where digital dollars circulate outside traditional banking systems, influencing monetary policy and local currency stability. African regulators especially in nations exploring central bank digital currencies (CBDCs) like Rwanda, Ghana, and South Africa will likely monitor the rollout closely.
Unlike unregulated crypto experiments, Western Union’s stablecoin operates within compliance-grade infrastructure, giving it legitimacy in policy circles. Whether governments embrace or restrict its use will depend on how effectively it integrates with existing financial systems.
The stablecoin race is on. Western Union’s move signals a shift from fintech-led disruption to institutional adoption, where legacy players begin to dominate the same technologies once seen as threats. In Africa, where remittances power millions of livelihoods, that shift could redefine what it means to send, hold, and spend money.
About The Author
