Global financial services company Western Union is making a strategic move into the world of stablecoins, responding to the evolving landscape created by the recent passage of the GENIUS Act in the US.

On Tuesday, the company announced its intention to launch the US Dollar Payment Token (USDPT), a new stablecoin, alongside its Digital Asset Network designed to integrate digital and fiat currencies.

Western Union New USDPT Stablecoin

Built on the Solana (SOL) blockchain and issued by Anchorage Digital Bank, USDPT aims to broaden the options for transferring money for customers, agents, and partners, while also bolstering Western Union’s treasury capabilities. 

Through this initiative, the company plans to provide users with access to digital assets, allowing them to send, receive, spend, and hold USDPT with ease, supported by Western Union’s global compliance and risk management framework.

Devin McGranahan, President and CEO of Western Union, expressed the company’s commitment to harnessing emerging technologies to empower customers and communities. 

“As we transition into the digital asset space, USDPT will enable us to take ownership of the economics associated with stablecoins,” McGranahan stated. 

He also highlighted the significance of the Digital Asset Network, which aims to simplify cash off-ramps for digital assets by partnering with wallets and wallet providers, thereby allowing seamless access for customers via Western Union’s extensive global network.

Western Union anticipates that USDPT will launch in the first half of 2026, with plans for users to access the stablecoin through partner exchanges, ensuring broad availability and user-friendliness.

Stablecoins To Reduce Reliance On Traditional Banking

During Western Union’s third quarter of the year earnings call last Thursday, McGranahan revealed that the company has initiated a pilot program utilizing stablecoins for value transfer. 

He noted that this pilot aims to leverage blockchain technology and stablecoins to decrease reliance on traditional correspondent banking systems, which will help shorten settlement times and enhance capital efficiency.

Historically, Western Union has maintained a cautious approach towards crypto, primarily due to concerns regarding volatility, regulatory challenges, and customer protection. 

However, with the enactment of the GENIUS Act, McGranahan indicated that new opportunities are emerging for integrating digital assets into the company’s operations, enhancing efficiency, reducing friction, and ultimately improving the customer experience.

Western Union facilitates the transfer of billions of dollars annually, boasting a market capitalization of over $2.9 billion as of October 28, and generating more than $1 billion in adjusted revenue in the third quarter of the year alone.

Despite the announcement, SOL’s price has failed to react positively, currently attempting to hold the $200 line as the cryptocurrency’s next short-term support.

Featured image from DALL-E, chart from TradingView.com 

Market expert VirtualBacon recently suggested that the most significant event for the crypto industry this year is not the Bitcoin (BTC) Halving or the approval of exchange-traded funds (ETFs), but rather a potential shift in Federal Reserve (Fed) liquidity policy. 

After 18 months of tightening measures, the Fed is reportedly preparing to pause its quantitative tightening (QT) and may even initiate stealth quantitative easing (QE) once again.

What’s Next For The Crypto Market

In a recent post on social media platform X, VirtualBacon laid out a compelling argument linking liquidity pivots to altcoin cycles. In 2019, the Fed halted QT, which resulted in a rally for altcoins. Conversely, in 2022, when the Fed began QT, altcoins peaked. 

Now, as the Fed is expected to end QT in 2025, VirtualBacon anticipates a similar surge for altcoins. The correlation is clear: when the Fed increases liquidity, altcoins tend to rise. The pressing question now is when exactly QT will come to a close.

While the Fed may not explicitly label a shift as QE, the expert notes that the pivotal moment will arrive when they remove the language regarding “reducing the size of the balance sheet.” 

The last notable instance of this was during the 2019 repo crisis, when banks faced immediate cash shortages, prompting the Fed to inject $75 billion into the financial system. Although Powell claimed it was “not QE,” it effectively was, and following that intervention, Bitcoin tripled in value within months.

CME FedWatch Tool Shows High Probability Of Rate Cuts

Major financial institutions are already making predictions, with Goldman Sachs stating that the October meeting is the base case for QT to end, Bank of America expecting QT to cease by month-end, and Evercore indicating that the Fed is likely to signal an end to QT this week. 

The same indicators that caused market disruptions back in 2019 are signaling distress now. Regardless of official statements, it appears QT is nearing its conclusion, with stealth QE on the horizon.

This shift would facilitate a return of liquidity to the markets, which historically has driven crypto prices. Liquidity acts as the fuel for market movements, and the Fed is poised to refill this tank. 

The CME FedWatch tool currently indicates a 96.7% probability of a rate cut this month and an 87.9% chance of another cut in December. Powell recently hinted that QT would conclude “in the coming months,” signaling an imminent pivot.

M2 Money Supply Signals Upcoming Bitcoin Surge

Despite the current market uncertainty, VirtualBacon asserts that Bitcoin has not reached its peak. Out of 30 historical indicators that typically signal a bull market peak, none have activated yet, with data indicating there is still room for growth. 

The global M2 money supply continues to rise, which historically leads Bitcoin prices by 10 to 12 weeks. The expert added that since the beginning of the month, this money supply has been increasing.

This development indicates that Bitcoin’s next upward movement is already in the pipeline, albeit lagging behind the liquidity curve. Additionally, VirtualBacon forecasts that once the Fed pivots, a new altcoin season may commence. 

Featured image from DALL-E, chart from TradingView.com

The crypto market, despite experiencing throughout the year major price fluctuations, security incidents, and legal hurdles, has experienced remarkable growth.

This can be attributed to the expansion of digital asset treasuries (DATs), increased institutional adoption, and new initiatives aimed at integrating digital assets, particularly stablecoins, into traditional financial sectors.

Andreessen Horowitz (a16z) recently shared their projections for the crypto landscape for the remainder of the year and years to come, highlighting nine key trends expected to be major catalysts for the industry.

Key Legislative Changes And Institutional Adoption 

Firstly, market structure legislation in the US is expected to emerge as a critical priority for policymakers and Congress, establishing a clear regulatory framework that supports crypto developers. 

The passage of the GENIUS Act in July of this year also marked a pivotal moment, garnering bipartisan support and providing builders with much-needed certainty in their endeavors.

Secondly, the adoption of stablecoins is set to accelerate as network effects take hold among financial institutions, merchants, and consumers, thereby enhancing the global standing of the US dollar.

Furthermore, major players like JPMorgan, Citi, BlackRock, and Fidelity are amplifying their crypto offerings through new product launches, partnerships, and acquisitions. 

The infrastructure supporting blockchain technology is also advancing rapidly. Current networks can process over 3,400 transactions per second, marking a 100-fold increase over the past five years.

Moreover, a new wave of real-world assets (RWAs) is transitioning onto the blockchain as the worlds of crypto and traditional finance converge. The market for tokenized real-world assets has expanded to nearly $30 billion, with significant contributions from Treasuries, money market funds, and private credit.

The Future Of Crypto

In parallel, the crypto sector is attracting a growing pool of talent, driven by a more favorable regulatory environment and the emergence of new opportunities for developers.

The focus on revenue generation is also shifting within the token ecosystem. More tokens are implementing fee mechanisms, redirecting attention toward fundamental value. In the past year, users have paid $33 billion in fees, resulting in $18 billion for projects and $4 billion for token holders. 

Innovative consumer products are also expected to drive the next wave of crypto adoption. Although approximately 716 million people now own cryptocurrency, only 40 to 70 million are considered active users. 

Ultimately, 2025 is poised to lay the groundwork and establish the foundations for the years to come. It is expected to be a transformative year for the crypto industry, characterized by widespread institutional adoption, regulatory clarity, and tangible utility. 

Featured image from DALL-E, chart from TradingView.com

Despite facing criticism for lagging behind the United States in creating a more accommodating environment for cryptocurrency growth and adoption, China reaffirmed its stringent stance on crypto once again this week. 

Authorities issued warnings about the alleged risks posed by stablecoins, particularly amid concerns that the US may have solidified its dollar dominance through these digital assets.

US GENIUS Act Vs. China’s Crypto Caution

According to local media reports, Pan Gongsheng, governor of the People’s Bank of China, announced plans to expand the use of the country’s central bank digital currency (CBDC), known as the “e-CNY.” 

He remarked, “[Stablecoins] are still in their early stages of development,” emphasizing that financial regulators globally remain cautious about these assets, which are typically pegged to other currencies.

In the United States, however, Trump’s policies toward digital assets have resulted in the passage of the GENIUS Act, as the first crypto bill aimed at laying the framework for the adoption of these dollar-pegged cryptocurrencies. 

Yet, Pan highlighted that stablecoins currently fail to meet essential requirements such as customer identification and anti-money laundering (AML) measures, which could allegedly exacerbate gaps in global financial regulation. 

He expressed concern that these issues foster a “speculative market atmosphere,” increasing vulnerabilities in the global financial system and affecting the monetary sovereignty of less developed economies. 

The central bank plans to collaborate with law enforcement to continue cracking down on domestic operations and speculation related to crypto. “The policies and measures implemented since 2017 to address risks associated with virtual currencies remain in effect,” he stated.

Regulatory Revisions Ahead

Despite China’s continuous crypto crackdown, research on stablecoins is progressing within China. The country’s largest government-backed research fund recently opened applications for studies focused on stablecoins and their cross-border monitoring systems, offering grants ranging from 200,000 yuan (approximately $28,083) to 300,000 yuan ($42,126).

The central bank also plans to optimize the positioning of the digital yuan, allowing more commercial banks to participate in the pilot program that has been running in over two dozen cities since 2019, accumulating a transaction value exceeding 14 trillion yuan.

Zhu Hexin, director of the State Administration of Foreign Exchange, indicated that nine new policy measures would soon be introduced to promote trade innovation and development, with the potential to bring positive developments for the growth of the crypto ecosystem in the Asian country. 

Wu Qing, chairman of the China Securities Regulatory Commission, also hinted at the possibility of such measures, stating that the regulator would review listing standards on the Shenzhen Stock Exchange’s ChiNext board to better align with the characteristics of emerging fields and future industries.

Featured image from DALL-E, chart from TradingView.com 

After months of growing uncertainty and anticipation, the debut of exchange-traded funds (ETFs) for Hedera (HBAR) and Litecoin (LTC) is set to commence tomorrow, as confirmed by Canary Capital’s CEO Steven McClurg on Monday.

Hedera And Litecoin ETF Launches Imminent

Crypto reporter Eleanor Terret shared the news on X (formerly Twitter), revealing that the ETF launches for Litecoin and Hedera are imminent, with a statement from McClurg underscoring the excitement for the upcoming launch.

Notably, the New York Stock Exchange (NYSE) has also made significant moves in the ETF sector by certifying 8-A filings and issuing listing notices for Bitwise Invest’s spot Solana (SOL) ETF launch tomorrow and Grayscale’s GSOL conversion slated for Wednesday.

Despite the ongoing government shutdown, these ETF debuts are proceeding smoothly, Terret confirmed. The legal processes behind ETF launches, including the crucial 8-A filings, have been completed successfully, paving the way for the launch of these investment vehicles.

ETF Listings Confirmed

Addressing concerns about Securities and Exchange Commission (SEC) approval during the shutdown, a key detail emerged: the issuers strategically included provisions in their amended S-1 filings, enabling automatic effectiveness 20 days post-filing. This ensures a seamless transition to trading without manual SEC approval.

Bloomberg’s ETF expert, Eric Balchunas, further corroborated this development on social media, confirming the listing notices for Bitwise, Canary, to launch imminently, with grayscale Solana’s conversion scheduled shortly after. Balchunas stated, “Assuming there’s not some last min SEC intervention, looks like this is happening.”

The news has sparked a recovery in HBAR and LTC prices. Litecoin has regained the key $100 mark with a 2% surge in the 24-hour time frame, while Hedera has seen similar gains of 2.1% during the same period. 

Featured image from DALL-E, chart from TradingView.com