Remittance firms launch stablecoins as SWIFT stays central

Western Union launched a Solana-based stablecoin called USDPT on Monday in the Philippines and Bolivia and said it will expand the token to more markets through 2026. The company intends to use the stablecoin as an alternative settlement layer to move and settle transfers on-chain in real time, including on weekends and holidays. Western Union also launched a Digital Asset Network to support the effort.

MoneyGram announced a partnership with crypto exchange Kraken on Tuesday that lets customers convert cryptocurrency into cash for pickup at MoneyGram locations. The tie-up adds a pathway for users to move from crypto to fiat at physical outlets and complements MoneyGram’s ongoing work on blockchain-based rails.

SWIFT, the global banking messaging system founded in 1973, continues to handle settlement instructions among banks across more than 200 countries and territories. The organization has been exploring shared ledger projects with a group of financial institutions, but industry executives say a single corporate stablecoin is unlikely to displace SWIFT quickly. Bernardo Bilotta, CEO of stablecoin infrastructure platform Stables, warned, “SWIFT isn’t going to be replaced by a single announcement or a single stablecoin. It’s deeply entrenched.” He added that for many institutional transfers the costs of switching outweigh the immediate benefits.

Executives say stablecoin settlement can reduce the need to pre-fund dozens or hundreds of correspondent bank accounts. Bilotta explained that remittance firms often keep money parked across many correspondent accounts to guarantee quick settlement under traditional banking schedules. Those balances generate little return while they sit idle. Moving settlement to stablecoins can shorten timelines from days to minutes and reduce pre-funded balances, though stablecoin issuers must also hold reserves and manage liquidity continuously.

Sota Watanabe, CEO of Startale Group, noted that traditional banking hours allow institutions to batch transactions, net exposure and manage liquidity. He warned that using stablecoins requires treasury systems to operate around the clock rather than only during business hours.

Industry participants raised concerns about fragmentation if major companies issue private stablecoins. Private tokens can give firms control over issuance, counterparties and treasury flows, but they may create closed ecosystems that require bridges or bilateral agreements to move liquidity between networks. Bilotta contrasted that structure with public stablecoins, which operate on shared rails and allow the same token to move between jurisdictions without translation or bilateral agreements.

Western Union’s USDPT launch and MoneyGram’s Kraken partnership are active examples of remittance firms testing crypto rails to speed settlement and offer alternative payout paths. Companies implementing on-chain settlement will need continuous treasury operations and clear reserve practices. At the same time, the existing SWIFT network and the operational needs of banks remain central to global cross-border payments.