The XRP community has lost a major opportunity for the Solana (SOL) ecosystem. On Tuesday, Western Union announced a strategic partnership with Anchorage Digital to launch a stablecoin called USDPT on the Solana network.
“We’ve been connecting people for 175 years, moving $150 billion a year. Digital assets are the next evolution. We looked at alternatives and decided Solana was the right choice,” said Devin McGranahan, CEO of Western Union, noted.
Notably, Western Union once used Ripple Lab’s xRapid, which uses XRP, to facilitate cross-border payments. The pilot program between Western Union and Ripple was unsuccessful as it was negatively impacted by the recently concluded lawsuit against Ripple by the U.S. Securities and Exchange Commission (SEC).
Why Western Union chose Solana to build its Stablecoin
Reliable, tested and scalable smart contracts
Western Union has joined other institutional investors building on the Solana blockchain, including PayPal and Fiserv. The Solana network has been running for over a year without any downtime thanks to its remarkable scalability and affordability.
The Solana chain also complies with existing regulations, including President Donald Trump’s recently passed GENIUS Act.
Solana’s global community has grown in recent years, fueled by its high throughput and cheap transaction rates. As such, Western Union will reach more global markets and users for its USDPT stablecoin.
Market impact
The market impact of Western Union’s launch of its stablecoin on Solana has a mutual benefit for both parties. As for Solana, demand for SOL to facilitate USDPT payments will strengthen macro upside sentiment.
On the other hand, Western Union has a greater chance of flourishing in cross-border payments in the future, thus strengthening the stock market.
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