William Blair Says Western Union’s Solana Stablecoin Marks a Strategic Leap Into Blockchain Remittances
29/10/2025
Western Union (WU) shares surged 6.5% on Tuesday after the company announced the launch of its U.S. Dollar Payment Token (USDPT) on Solana, issued by Anchorage Digital Bank, along with a new crypto off-ramp network called the Digital Asset Network.
Investment bank William Blair called the move a strategic expansion into blockchain-based remittances, noting that stablecoins represent an opportunity rather than a threat for firms willing to modernize their cross-border models.
The analysts said they expect additional details at Western Union’s November 6 investor day, but highlighted that stablecoin-enabled payments could shorten settlement times, reduce pre-funding needs, and enhance capital efficiency, particularly in emerging or inflation-prone economies.
Western Union’s Digital Asset Network, spanning 380,000 agent locations globally, shows how traditional remittance firms can bridge crypto and fiat systems to capture new transaction flows, the report added. However, fiat conversion and compliance hurdles remain barriers to full-scale integration.
Despite progress in digital initiatives, William Blair noted sluggish growth in Western Union’s core money transfer business and possible pressure from a proposed 2026 remittance tax.
The firm maintained its “market perform” rating on the stock, citing the company’s 10% dividend yield and low 5.3x 2026 price-to-earnings multiple as near-term supports. The report said the next key challenges will be driving revenue growth and executing on digital strategy.
Following the announcement, WU stock climbed 2% to $9.68 in early trading, extending its session gains.
