TL;DR
- Western Union will launch its own stablecoin, “US Dollar Payment Token (USDPT).”
- The company selected the Solana (SOL) network over the XRP Ledger (XRPL).
- The XRP community reacted with disappointment, recalling WU’s trials with Ripple in 2018.
Western Union, one of the world’s most established payment companies, has taken a significant step in adapting to the digital age by announcing the launch of a new stablecoin. However, the decision has disappointed XRP investors, as the company opted for the Solana (SOL) network to issue its “US Dollar Payment Token (USDPT).”
The news generated frustration within the XRP community, especially since Western Union has been experimenting with Ripple’s payment technology since 2015. The company had explored Ripple’s blockchain solution to enable faster and cheaper cross-border payments, and even conducted several pilots with XRP in 2018.
The expectation of eventual formal integration was thwarted. The fact that Western Union chose Solana for its stablecoin was interpreted by many users as a setback for Ripple and a potential threat to the XRPL ecosystem.
A Strategic Impact for Ripple?
Despite the community’s negative reaction, industry experts have nuanced the news’s impact. Hugo Philion, CEO of Flare, intervened to calm concerns, emphasizing that Western Union’s agreement with Solana does not have a negative strategic impact on the Ripple (XRP) or XRP Ledger (XRPL) ecosystem.
According to Philion, the decision does not pose a threat because Ripple has reoriented its focus towards considerably more lucrative sectors, such as trading and asset management, with a broader market perspective. In contrast, Western Union’s focus remains almost exclusively on consumer-to-consumer payments.
“Western Union’s Solana deal has nothing to do with XRPL or Ripple,” declared the Flare CEO. Philion added that his own platform, Flare, complements the successes of Ripple and XRPL by expanding XRP’s use cases and making it “highly programmable,” thereby strengthening the verticals in which Ripple has already gained ground.
