During the company’s recent third-quarter earnings call, CEO Devin McGranahan revealed that the initiative focuses on leveraging on-chain settlement rails to reduce reliance on outdated correspondent banking systems.
“We see significant opportunities for us to move money faster with greater transparency and at lower cost, without compromising compliance or customer trust,” McGranahan
said.Western Union currently processes about 70 million transfers every quarter, serving customers in over 200 countries. By integrating blockchain technology, the company hopes to improve efficiency and address long-standing challenges in the traditional remittance system, such as long settlement times and high transaction fees.
A Step Toward Broader Institutional Adoption
The announcement comes just a few months after Western Union first hinted at plans to incorporate stablecoins into its operations. McGranahan noted that the company initially stayed away from cryptocurrencies due to concerns over volatility, regulatory uncertainty, and customer protection.
However, the recent passage of the GENIUS Act, which provides clearer regulatory guidance for digital assets, has encouraged the company to move forward.
Western Union’s new pilot reflects a growing trend of institutional adoption of stablecoins, which are cryptocurrencies pegged to stable assets like the U.S. dollar. According to an April report from the U.S. Treasury Department, the stablecoin market has already surpassed $300 billion and is expected to reach $2 trillion by 2028.
Benefits for High-Inflation Economies
Western Union believes that stablecoins can offer real benefits to customers, especially those living in high-inflation countries. “In many parts of the world, being able to hold a U.S. dollar–denominated asset has real value, as inflation and currency devaluation can rapidly erode an individual’s purchasing power,” the company said. “These innovations align closely with our broader strategy to modernize the movement of money.”
Other major players in the payments industry are also exploring similar solutions. Early Warning Services, the parent company of Zelle, recently announced plans to integrate stablecoins for cross-border payments. Likewise, MoneyGram will soon launch its crypto app in Colombia, enabling locals to save, send, and receive USDC stablecoins almost instantly.
Western Union’s stablecoin pilot marks a significant shift in how traditional financial institutions are embracing blockchain to make global remittances faster, more efficient, and more inclusive.
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