PSD imported texture has white for texels with 0 alpha, resulting in bilinear interpolation artifacts

Texture viewed in texture viewer has white fringes

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This appears to be caused by transparent texels having white stored for their color, which causes artifacts with bilinear interpolation. This could probably be solved by dilating the texels with alpha > 0 onto texels with alpha == 0.

Import attached psd
Open in texture viewer, note white fringes around everything

Fix UE-51650

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