Western Union, a global remittance giant, is launching a pilot program to integrate stablecoin-based settlement systems, aiming to modernize its operations and reduce reliance on legacy banking infrastructure. During the third-quarter earnings call, CEO Devin McGranahan emphasized that this move will double down on on and off ramps for digital assets, allowing the company to process money faster, more transparently, and at lower costs without compromising compliance or customer trust.
McGranahan noted, "We see significant opportunities for us to be able to move money faster with greater transparency and at lower cost without compromising compliance or customer trust." He highlighted strong demand for last-mile stablecoin delivery in regions with limited bank access, and the pilot focuses on leveraging on-chain rails to shorten settlement windows and improve capital efficiency. Western Union processes around 70 million transfers per quarter across over 200 countries, and this initiative could benefit customers in high-inflation areas by offering US dollar-denominated assets to preserve purchasing power.
The shift follows the passage of the GENIUS Act in July, which has spurred stablecoin adoption, with the market cap exceeding $300 billion and annualized settlement volumes hitting $118 billion as of August. Experts like Omar Kanji from Dragonfly VC suggest that if successful, Western Union could become an acquisition target for crypto-native firms. Chuk Okpalugo, former Paxos product lead, views the long-term goal as a "financial super-app" where users can access savings, credit, and investments within the app.
Competitors are also advancing; MoneyGram is rolling out a crypto app in Colombia using Circle's USDC stablecoin, and Zelle's parent company is integrating stablecoins for cross-border transactions. This broader trend underscores institutional adoption, with the stablecoin market projected to reach $2 trillion by 2028.
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