Western Union’s Prepaid Card Initiative
Western Union is on a mission to introduce a prepaid card linked to stablecoins, aimed specifically at nations experiencing significant inflation. As revealed by CFO Matthew Cagwin during his remarks at the UBS Global Technology and AI conference, this initiative targets markets where the rapid devaluation of local currencies negatively affects consumers’ buying power. Argentina, which faced an alarming inflation rate of over 200% last year, has been identified as a key market for this financial product designed to help safeguard value for those receiving remittances in such unstable economies.
Partnership with Rain
The company has formed a partnership with Rain to issue Visa-branded cards that are synchronized with stablecoins, enabling users to effortlessly convert their digital assets held in Rain-connected wallets to local currency at any Western Union outlet. According to Cagwin, the organization is actively developing both on-ramps and off-ramps within their digital asset ecosystem to minimize reliance on traditional banking infrastructure and streamline the settlement process for funds.
“We’re working with several providers to build this infrastructure,”
Cagwin noted.
Launch of the US Dollar Payment Token
Set for launch in 2026, the US Dollar Payment Token (USDPT), a stablecoin developed by Anchorage Digital on the Solana blockchain, will play a pivotal role in Western Union’s larger digital asset framework. This prepaid card is designed to serve as a conduit for stablecoins, facilitating everyday transactions in regions impacted by high inflation rates. Users will receive remittance payments loaded onto these cards, which can then be utilized for purchases at retailers or withdrawn as cash from Western Union locations.
Shift in Perspective on Cryptocurrencies
Historically, Western Union has expressed skepticism towards cryptocurrencies. Back in 2017, the company’s Chief Technology Officer, David Thompson, raised doubts about Bitcoin’s function as a cash alternative, likening cryptocurrencies to commodities rather than practical money due to concerns over governance and stability. However, the firm shifted its perspective in late 2025 following the advent of clearer regulations. CEO Devin McGranahan acknowledged that previous hesitance was mainly due to worries surrounding volatility and regulatory issues affecting customer safety.
Pakistan’s Digital Finance Developments
In a related context, Pakistan is also taking strides in the digital finance space by announcing the development of its first stablecoin to incorporate virtual assets into its economy. Bilal Bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), confirmed during the Binance Blockchain Week in Dubai that the country is committed to launching this stablecoin as a means to strengthen government debt.
“We aspire to lead in this digital financial innovation rather than play catch-up, as there is significant potential within our market,”
stated Saqib. PVARA is also engaged in the development of Central Bank Digital Currencies while advancing its stablecoin project. Earlier this year, Saqib introduced Pakistan’s Strategic Bitcoin Reserve initiative, and in May, the government earmarked 2,000 megawatts of electricity to support Bitcoin mining and artificial intelligence data centers.
