Real World Example of Converting to Crypto Blockchain
Western Union (WU)
Stock Price: $9.50
Dividend (TTM) 9.52% – Payout Prercentage 34.32%
P/E ratio: 4.14
Price to Free Cash Flow: 5.94
- 50-day MA has crossed above the 150-day MA
- Increased volume at the lows signal convergence of buyers and seller – probable price turning point indication.
- Attractive “Valuation” as marked by P/E ratio and Dividend stated above
- Price is emerging from a stage one base building chart pattern towards stage two rising chart pattern. I would expect some price backing an filling towards support at its 50-day MA.
- Timeline – short-term, six months. Longer-term, 1 to 2 years.
Western Union is late to this adoption of Blockchain into their system. Companies like Money Gram, Visa, Mastercard, PayPal and Block started this integration four to six years ago. Western Union is playing a catch-up. Western’s attraction is the very large installed base of clients that is global.
LOTM will state this as a fact: Companies big and small that do not integrate AI and Blockchain into their everyday activities will die and be forgotton. This change is as dramatic as Horse & Buggy giving way to Automobiles and Airplanes. Automobtles went into mass production in 1913 Blockchain started mass adaption during Covid in the USA.
About Western Union integrating Solana into their money transfer business
Western Union is currently in the process of integrating Solana into its money transfer business by developing a new stablecoin, the U.S. Dollar Payment Token (USDPT), which is planned for a full rollout in 2026. The service is not yet fully operational for general customer use, but the digital asset network is launching in early 2026.
The Solana Integration Plan
Western Union is leveraging the Solana blockchain’s high-speed and low-cost infrastructure to modernize its global remittance operations, aiming to compete with digital-first rivals like MoneyGram and PayPal. The initiative follows the passage of the U.S. GENIUS Act, which provided clearer regulatory guidelines for stablecoins and encouraged traditional financial institutions to explore digital assets.
- U.S. Dollar Payment Token (USDPT): This stablecoin will be built on the Solana blockchain and issued by Anchorage Digital Bank, a federally regulated digital asset bank. The goal of the USDPT is to provide a digital dollar that can be moved quickly and cheaply around the world, circumventing the slower and more expensive legacy correspondent banking systems.
- Digital Asset Network (DAN): Western Union is building a comprehensive network that will connect various crypto wallets and allow users to convert USDPT or other supported tokens into local currency through its vast network of over 600,000 agent locations across 200 countries and territories. This provides a critical “last mile” solution for unbanked users in emerging markets to cash out digital assets into physical currency.
- Targeted Markets: The stablecoin and an accompanying “stable card” product are specifically aimed at high-inflation economies like Argentina, Venezuela, Nigeria, and Turkey, where holding a dollar-denominated asset helps protect the value of remittances from local currency fluctuations.
Benefits for Western Union and Customers
The shift to blockchain technology is expected to offer significant advantages:
- Faster Settlements: Transactions are expected to finalize in seconds, a major improvement over traditional international transfers that can take several days.
- Lower Costs: The low transaction fees on the Solana network (a fraction of a cent) will help Western Union reduce its operational costs, potentially leading to lower fees for customers.
- Improved Efficiency: Real-time settlement on the blockchain will allow Western Union to recoup working capital faster and better manage its treasury and liquidity.
Western Union views this integration as a crucial step in its “Evolve 2025” strategy, positioning itself as a leader in the fusion of traditional and crypto finance.
Negative:
Competition is intense and WU is following companies such as Money Gram, Visa, Mastercard, PayPal and Block.
Supporting articles:
November 7, 2025 Motley FOOL article
MEXC Exchange – 2025/12/06 20:19
Western Union press release: October 28, 2025
Legacy payments firm partners with Anchorage Digital to issue a dollar-pegged token under new US stablecoin law
By Blockworks – October 28, 2025
Western Union’s Momentum Oscillator (Wm%R) and Money Flow (CMF) indicators. Dated Dec11, 2025
LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
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