Western Union Targets Nigerians with Dollar-Backed Crypto: A Game-Changer for Remittances
- One of the world’s biggest remittance and money transfer companies, Western Union has launched a dollar-backed stablecoin
- The company said the move marks a turning point in how global remittances, especially to Africa
- The company disclosed that the new crypto will launch in 2026 to ease money transfer across the continents
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Western Union, one of the world’s oldest and most recognisable money transfer companies, is stepping boldly into the world of cryptocurrency.
The New York Stock Exchange-listed firm has announced that it will launch the US Dollar Payment Token (USDPT), a dollar-backed stablecoin, on the Solana blockchain in 2026.
Source: Getty Images
The move, unveiled by CEO Devin McGranahan during the Money20/20 Fintech Conference in Las Vegas, marks a turning point in how global remittances, especially to Africa, may soon work.
McGranahan called stablecoins “the next evolution of how remittances will move around the world.”
Africa at the heart of Western Union’s digital pivot
Western Union operates in over 200 countries, powering remittances across 50 African markets through banks, mobile money operators, and local agents.
The company processed $102.9 billion in global cross-border payments in 2024, with the Middle East, Africa, and South Asia (MEASA) region contributing $18.5 billion, nearly one-fifth of its total.
Africa, though not Western Union’s largest market, remains one of its most strategically important.
Nigeria, Kenya, and South Africa top the list of key corridors where millions depend on remittances for family support and small business funding.
With Africa’s remittance inflows reaching $95 billion in 2024, Western Union’s stablecoin launch is clearly aimed at capturing a larger share of a fast-digitising market already experimenting with crypto transfers.
Why stablecoins could change everything
The USDPT will be fully backed by US dollars and issued through Anchorage Digital Bank, a federally regulated US institution.
By leveraging Solana’s fast and low-cost network, Western Union promises near-instant, low-fee transfers compared to traditional banking channels.
For millions of Africans, especially in Nigeria, where currency volatility and inflation erode savings, receiving remittances in a dollar-pegged digital token could offer more stability and value preservation.
Instead of queuing at cash pickup points, recipients could hold and use USDPT in digital wallets linked to bank or mobile money accounts, enabling seamless conversion or spending.
“If you already move $100 billion a year across borders, picking a partner that does that fast, efficiently, stable, and secure is really important,” McGranahan said, explaining why Solana was chosen for the launch.
Crypto dollarisation or financial empowerment?
TechCabal reported that the introduction of a corporate-backed stablecoin for African remittances could ignite a “crypto dollarisation” wave, where more people hold and transact in digital dollars rather than local currencies.
Experts warn this trend could weaken national currencies, but others argue it will enhance financial inclusion, lower transfer fees, and integrate Africa into the global digital economy.
Already, Nigerians and Kenyans use USDT and USDC stablecoins to protect savings and conduct cross-border trade. Western Union’s regulated model could mainstream this behaviour under a trusted global brand.
If just $1 billion of African remittances flow through USDPT, it could become one of the most widely held regulated stablecoins in the Global South, benefiting users with faster, cheaper, and safer remittances.
What it means for regulators
African central banks are likely to tread carefully. Many, including those in Rwanda, Ghana, South Africa, and Morocco, are already experimenting with central bank digital currencies (CBDCs).
However, Western Union’s fully compliant and traceable model may ease regulatory fears.
Source: Twitter
By combining crypto efficiency with institutional oversight, USDPT could set a precedent for how global fintech firms expand into Africa’s digital financial ecosystem, bridging the gap between traditional remittances and the blockchain era.
Nigeria already studying stablecoin, CBN confirms
The company's statement comes when the Central Bank of Nigeria (CBN) said the Nigerian government has set up stablecoin study team, signaling hopes of adoption.
The CBN confirmed that the Federal Government is studying stablecoins, digital currencies pegged to real-world assets like the US dollar or naira, as part of its plan to modernize the financial system.
The revelation came from CBN Governor, Olayemi Cardoso, during a press briefing in Washington DC, following the World Bank and International Monetary Fund (IMF) annual meetings.
Crypto transactions hit $50 billion in one year
Legit.ng earlier reported that Nigeria’s cryptocurrency sector has seen remarkable activity, with transactions valued at $50 billion between July 2023 and June 2024, according to the Securities and Exchange Commission (SEC).
In a statement issued on Sunday, Emomotimi Agama, the SEC’s Director-General, highlighted that the level of trading in digital assets contrasts sharply with Nigeria’s traditional capital market, where fewer than 4% of adults are active investors.
Agama noted that the growing cryptocurrency trade reflects the sophistication and risk appetite of many Nigerians, qualities that have not yet translated into traditional investment channels.
Source: Legit.ng
