Global payments giant Western Union is preparing to pilot a stablecoin-based settlement system, marking its biggest move yet toward blockchain-powered remittances.
Key Takeaways:
Western Union will pilot a stablecoin-based settlement system to modernize its global remittance operations. CEO Devin McGranahan said onchain settlements could make money transfers faster, cheaper, and more transparent. The move follows the GENIUS Act’s regulatory clarity and rising institutional interest in stablecoins.The initiative aims to modernize how the company processes its roughly 70 million money transfers each quarter, serving over 150 million customers across 200 countries.
Onchain Settlements Can Cut Costs and Speed Up Transfers
During the company’s third-quarter earnings call on Thursday, CEO Devin McGranahan said the pilot will focus on using onchain settlement rails to reduce reliance on traditional correspondent banking networks.
“We see significant opportunities to move money faster with greater transparency and at lower cost — without compromising compliance or customer trust,” McGranahan said.
The company has been exploring digital asset integration for months. Western Union first hinted at stablecoin adoption earlier this year but had held off due to concerns over volatility and unclear regulations.
McGranahan noted that the recent passage of the GENIUS Act, which provides a clearer regulatory framework for digital assets, has encouraged the company to move forward.
Stablecoins have become increasingly attractive to payment firms looking to reduce settlement times and costs.
The US Treasury Department said in April that the stablecoin market has surpassed $300 billion and could reach $2 trillion by 2028, signaling growing institutional interest.
Western Union believes stablecoins could be especially beneficial for users in high-inflation economies, where access to US dollar–backed assets helps preserve purchasing power.
“In many parts of the world, being able to hold a U.S. dollar–denominated asset has real value,” the company said in a statement, adding that such innovations align with its mission to “modernize the movement of money.”
The firm’s competitors are also accelerating their blockchain efforts. Zelle’s parent company, Early Warning Services, announced plans to integrate stablecoins for cross-border transactions.
Meanwhile, MoneyGram will soon launch a USDC-based savings and transfer app in Colombia, enabling near-instant international payments.
Banks Turn to Stablecoins as Competition Increases
In August, Citigroup CEO Jane Fraser confirmed the bank is “looking at the issuance of a Citi stablecoin” while developing tokenized deposit services for corporate clients seeking 24/7 settlement capabilities.
Earlier in June, JPMorgan also launched JPMD deposit tokens for institutional blockchain payments while CEO Jamie Dimon was questioning its use case.
The bank served as lead underwriter for Circle’s IPO, which has climbed over 500% since its $31 offering price.
It also appears that some institutions are showing approval to control stablecoins, as seen in the recent Bank of England’s proposal for strict ownership.
The bank caps between £10,000 and £20,000 for individuals and £10 million for businesses, which triggered widespread backlash.
As reported, Crypto.com is integrating Morpho, the second-largest DeFi lending protocol, into its platform to launch stablecoin lending markets directly on the Cronos blockchain.
The partnership will allow users to deposit wrapped versions of Bitcoin and Ethereum (CDCBTC and CDCETH) and borrow stablecoins against them without leaving the Crypto.com ecosystem.
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