Western Union has unveiled its new stablecoin initiative, including the launch of its own US Dollar Payment Token (USDPT) and a strategic partnership with Rain to enable stablecoin-powered card programs and local cash off-ramps..

The announcements, detailed in a recent episode of the "Stableminded" podcast, highlight the 174-year-old money transfer giant's push into digital assets amid evolving regulatory landscapes.

Malcolm, Western Union's lead on stablecoin and digital assets initiatives, joined host Zach on the podcast to discuss the company's journey into blockchain-based payments.

With a background spanning digital identity at TD Bank, ICOs at Kik, and identity projects at Disney, Malcolm emphasized how his experience in tokenization and payments led him to Western Union about six to eight months ago. "It's been a journey where popping in and out of that space and really keeping up with what's happening," he said, noting the timely alignment with regulatory developments like the GENIUS Act.

Redefining Stablecoins as 'Payment Tokens'

Western Union is rebranding its stablecoin as a "payment token" to make it more approachable for everyday consumers.

Malcolm explained that terms like "stablecoin" often evoke associations with volatile cryptocurrencies, potentially alienating users. "Payment token does lower that guard," he noted.

The USDPT is designed for global ubiquity, allowing Western Union to potentially expand to other currencies like a Mexican Peso Payment Token.

Backed by the premise that "everything is going to become tokenized," Malcolm compared the shift to how AI is transforming productivity. "Tokenization is going to do to the financial industry what AI is doing to productivity," he said.

Partnership with Rain and the Digital Asset Network

Central to this initiative is Western Union's Digital Asset Network (DAN). The network opens Western Union's global retail footprint as cash on and off ramps for stablecoin wallets.

Rain is among the first to participate.

As an enterprise stablecoin infrastructure platform, Rain powers stablecoin wallets, card programs, and payment rails for financial teams through a single API. Through this partnership, Rain-powered wallets will be able to convert stablecoins into local cash at over 400,000 Western Union locations across 150 countries.

Malcolm explained the relationship:

"We're the supplier to Rain... with that digital asset network, in the Rain partner wallets and other wallets, you can pick Western Union as your exit ramp and then simply walk into our store."

The broader strategy revolves around three pillars:

1. Issuing USDPT: Western Union's own payment token, issued on Solana through Anchorage. This optimizes internal treasury by moving from fiat rails to 24/7 blockchain settlement and generating yield when funds aren't in motion.
2. Supplying to Partners: Western Union becomes a supplier to crypto wallets through the Digital Asset Network, solving the last mile for cash. Customers in Rain-powered wallets and other participating wallets can select Western Union as their exit point and walk into a retail location to collect cash.
3. Stablecoin Cards: Rain is helping Western Union build stable card capability for their 100+ million consumers to hold USD-denominated payment tokens and spend via cards in local currencies.

Compliance, Technology Choices, and Future Vision

Addressing concerns about money laundering and crypto's "criminal currency" reputation, Malcolm stressed robust compliance. Partnerships ensure KYC/AML checks, with transaction codes tied to verified identities. Limits apply, and Western Union focuses on the fiat exit ramp without handling crypto trades directly. The Genius Act provides a regulatory framework, giving "legitimacy" and guidelines for safe operations.

Western Union selected Solana as its initial blockchain for USDPT due to its roadmap on privacy extensions, speed, and institutional appeal.

"We're chain-agnostic," Malcolm said, planning expansions to Ethereum and others.

Anchorage, an OCC-regulated custodian, handles compliance and storage, allowing Western Union to control its token's rules for loyalty programs and discounts.

Looking ahead, Malcolm envisions use cases like "send now, pay later," where users could margin crypto holdings for emergency remittances or microloans against incoming paychecks. He cautioned against hype cycles, urging focus on economics and distribution: "It's very difficult in any ecosystem to be successful if you don't drive the economics, you don't have the distribution."

A Complementary Evolution for Finance

Rather than a wholesale replacement of fiat systems, Malcolm described the initiative as supplementary.

"The consumers we have today, they don't care what you move their money with... as long as it's the best price, it gets there, it's secure."

Internal optimizations alone justify the move, with treasury yields from moving over $100 billion in fiat providing a strong hedge.

The rollout is underway, with the Digital Asset Network (DAN) extending existing capabilities. Partners like Rain are scaling quickly, and USDPT is slated for Q2 2026.

As institutions like PayPal and major banks enter the space, Western Union's approach underscores a pragmatic blend of legacy networks and blockchain innovation.