After years of testing Ripple's XRP, payments giant Western Union has officially chosen the Solana blockchain to launch its new USDPT stablecoin, citing superior speed, lower fees, and institutional readiness as key factors in the decision.
A Decade of Testing XRP
Western Union's journey with blockchain technology began back in 2015 when it started experimenting with Ripple. By 2018, the company was actively running pilots using XRP for cross-border settlements. However, the results were underwhelming. At the time, Western Union reported that XRP failed to offer a significant performance or cost advantage over its existing systems, leading the company to quietly shelve the partnership.
The Strategic Shift to Solana
Years later, Western Union is re-entering the blockchain space with a new strategy. The company announced its U.S. dollar-pegged stablecoin, USDPT, will be launched in partnership with Anchorage Digital on the Solana network. According to CEO Devin McGranom, the decision was purely based on technical merit after evaluating multiple blockchains.
Why Solana Was the Right Choice
Solana's high-speed, low-cost transaction capabilities and proven reliability made it the top contender for Western Union's institutional use case, which involves processing over $100 billion in cross-border transactions annually.
Controlling the Payment Rails
While technical performance was a stated reason, experts suggest a strategic business motive was also at play. Using XRP's open payment rails could have cannibalized Western Union's revenue from transaction fees. By issuing its own stablecoin on Solana, the company retains full control over its payment infrastructure and fee structure.
They picked Solana because it lets them build their own rails. Using XRP would have made them just another player in the Ripple ecosystem.
This move allows Western Union to modernize its services and compete with rivals like PayPal and MoneyGram, ensuring it remains a dominant force in the evolving world of global remittances.