Financial services giant Western Union is gearing up to pilot a stablecoin-based settlement system aimed at modernizing its remittance operations for over 150 million customers worldwide.
During the company’s third-quarter earnings call on Thursday, CEO Devin McGranahan shared that the pilot program focuses on leveraging on-chain settlement rails. The goal is to reduce dependency on legacy correspondent banking systems, shorten settlement windows, and improve capital efficiency.
“We see significant opportunities to move money faster, with greater transparency and at a lower cost — all without compromising compliance or customer trust,” McGranahan said.
### Blockchain and Remittances: A New Frontier
Western Union processes approximately 70 million transfers each quarter, serving customers across more than 200 countries. The implementation of blockchain technology could provide significant advantages over traditional remittance rails, enhancing speed, transparency, and cost efficiency for users.
This announcement follows Western Union’s initial hint about integrating stablecoins into their cross-border transfer services just over three months ago. McGranahan noted that the company had previously been cautious about adopting crypto due to concerns around volatility, regulatory uncertainty, and customer protection. However, the recent passage of the GENIUS Act has shifted the company’s approach.
### The Rise of Stablecoins in Institutional Finance
Western Union’s move reflects a broader trend of institutional adoption of stablecoins. The stablecoin market recently surpassed a $300 billion valuation and is projected to reach $2 trillion by 2028, according to the US Treasury Department’s April report.
### Stablecoins to Aid Customers in High-Inflation Countries
Western Union emphasized that the new stablecoin offering would provide customers with more choice and control in managing and transferring their money, particularly benefiting those in countries facing high inflation and currency devaluation.
“In many parts of the world, being able to hold a US 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.”
### Competitors Follow Suit
Western Union is not alone in embracing stablecoins. Early Warning Services, the parent company of the popular payments platform Zelle, announced on Friday plans to integrate stablecoins to facilitate cross-border transactions involving the United States.
Similarly, MoneyGram confirmed it will soon launch a crypto app in Colombia. The app will allow local users to save in Circle’s USDC stablecoin and send or receive funds overseas nearly instantly.
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As the remittance industry continues to evolve, stablecoins appear poised to play a key role in modernizing cross-border payments, offering faster, cheaper, and more transparent solutions for millions of users worldwide.
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