Western Union’s Solana-Based Stablecoin Could Drive Upside, Says William Blair Analysts

Western Union’s Solana Stablecoin Launch Seen as Strategic Shift Toward Blockchain Remittances

29/10/2025

Western Union (WU) shares gained 6.5% on Tuesday after the company revealed plans to roll out the U.S. Dollar Payment Token (USDPT) on the Solana blockchain, issued by Anchorage Digital Bank, alongside a new crypto off-ramp service called the Digital Asset Network.

In a note to investors, William Blair analysts described the move as a forward-looking step into blockchain-enabled remittances, positioning Western Union to benefit from the efficiency and transparency offered by stablecoin infrastructure.

The firm expects further clarity during Western Union’s Investor Day on November 6, but said the integration of stablecoin technology could accelerate transaction settlement, reduce pre-funding requirements, and improve capital efficiency, particularly in developing economies facing inflationary pressures.

The newly launched Digital Asset Network will provide cash-out capabilities at over 380,000 Western Union locations worldwide, illustrating how legacy remittance providers can capture value from tokenized payment flows. However, the report cautioned that fiat conversion and regulatory compliance remain significant challenges.

While Western Union continues to make progress in digital transformation, analysts pointed to sluggish core money transfer growth and potential headwinds from a proposed 2026 remittance tax as areas of concern.

Still, the firm noted that Western Union’s 10% dividend yield and modest 5.3x 2026 price-to-earnings ratio provide a valuation floor, even as it maintained a “market perform” rating. Sustained progress in digital adoption and revenue acceleration, it added, will be crucial for management’s next phase of execution.

Following the announcement, WU shares rose 2% in early trading, reaching $9.68 shortly after the market opened.