It was only a matter of time.
Since the passage of the GENIUS Act in the United States, the countdown began until a large number of financial institutions brought out their own stablecoin. This is going to eventually spread, in my view, to all the major banks.
PayPal, the leading only payment system, is already in the game. It actually brought out its stablecoin before the law went into effect.
JPMorgan brought out its coin a number of years ago. This is not for retail users, hence exempt for most regulation. It is used by institutions on a network the bank set up for settlements.
Now we see Western Union getting into the game.
In a recent announcement, the company stated that it is bringing out its own stablecoin that will be used across its payment system.
Financial services company Western Union has said its forthcoming stablecoin settlement system will use the Solana blockchain.
Like many institutions, it is turning to partnerships for the infrastructure.
Announced during the company’s third-quarter earnings call last week, the stablecoin system will consist of the US Dollar Payment Token (USDPT) and the Digital Asset Network, which will be built in partnership with Anchorage Digital Bank, Western Union said on Tuesday.
Of course, reinventing the wheel is not necessary. Western Union will mirror what PayPal did for its payments.
The company expects that USDPT will launch in the first half of 2026, providing customer access through partner exchanges to broaden accessibility, similar to how the PayPal USD (PYUSD) stablecoin is listed on Binance and other exchanges.
We are just at the beginning of the stablecoin revolution. With more entrants, we will likely see the number of coins on the market explode. The total market cap is now sitting at $311 billion according to Coinmarketcap.
For the moment, the payment companies are getting involved.
In addition to PayPal and Western Union, we see a couple other cross border payment companies moving into the stablecoin space.
On Friday, the parent company behind payments platform Zelle said it would launch stablecoins to fuel faster cross-border payments, while MoneyGram announced in mid-September that it would integrate its crypto app in Colombia to offer a USDC (USDC) wallet for locals.
The companies we are seeing entering the fray are larger than the likes of Circle or Tether. We are dealing with some established players in the world of payments.
These, however, will be dwarfed by what enters next. My prediction is that we will see the largest banks in the world involved still stands. The allure for the commercial banks simply is too enticing.
Citibank, Chase, and Well Farge are three I expect to get involved. They all have mentioned their interest albeit to varying degrees. I also will not be surprised when they establish the ability to swap for major coins such as Ethereum or Bitcoin. Custody services is something these banks will tap into.
The crypto industry is wide open. We are going to see the banks populate as many layers as possible. The industry did a poor job building out infrastructure along with brands that can withstand the upcoming onslaught.
Ultimately, the banks will serve as frontends to back infrastructure. This will be coupled with a stablecoin that is as much market as anything else. It will help to solidify the bank's brand, allowing it to serve as the gatekeeper for all its customers.
This goes against the grain for the traditional "crypto-bro". Nevertheless, we know the masses really do not care. They are perfectly content with using centralized systems, even if it is to their detriment.
It is safe to say the stablecoin market is going to get a lot more crowded.
