Western Union tests money transfers via stablecoins

The financial company Western Union is ready to launch a pilot project for a settlement system based on stablecoins to modernize its remittance operations for its more than 150 million customers. During Western Union’s third-quarter conference on Thursday, CEO Devin McGranahan stated that the pilot project is aimed at leveraging blockchain systems for settlement to reduce reliance on legacy correspondent banking systems, shorten settlement times, and improve capital efficiency.

– “We see significant opportunities for faster money flow with greater transparency and lower costs without compromising compliance or customer trust,” McGranahan said.

Western Union processes about 70 million transfers each quarter. Blockchain technology could offer significant advantages over traditional remittance systems and could benefit its customers located in over 200 countries. The latest statements from the cryptocurrency remittance platform come just over three months after it first hinted at plans to integrate stablecoins for cross-border transfers.

McGranahan noted that Western Union initially refrained from cryptocurrencies due to concerns about volatility, regulatory uncertainty, and user protection; however, the passage of the GENIUS Act has changed that direction.

The announcement also reflects broader institutional acceptance of stablecoins. This market recently surpassed $300 billion and is projected to reach $2 trillion by 2028, according to an April announcement from the U.S. Department of the Treasury.

Western Union stated that the offering of stablecoins will provide its users with greater choice and control over how they manage and move money, especially for those in inflation-affected countries.

– “In many parts of the world, the ability to hold assets denominated in U.S. dollars has real value as inflation and currency devaluation can quickly erode an individual’s purchasing power. These innovations are closely aligned with our broader strategy to modernize the movement of money,” added Western Union.

Early Warning Services, the parent company of the payment platform Zelle, announced on Friday that stablecoins will be integrated into Zelle to facilitate cross-border transactions for money flowing in and out of the U.S. Meanwhile, MoneyGram confirmed that it will soon launch its crypto app in Colombia, allowing locals to save in the USDC stablecoin from Circle and to receive and send money abroad almost instantly.