Western Union Eyes Stablecoins as Remittance Giants Face Outward Pressure
Western Union is exploring stablecoins to enhance cross-border payments, improve fiat conversion in remote markets, and provide a store-of-value for customers in countries with weak currencies. CEO Devin McGranahan views stablecoins as an opportunity amid increasing regulatory clarity, highlighted by the recent signing of the GENIUS Act, which establishes a U.S. framework for stablecoin issuance and trading. The company is piloting new settlement processes in South America and Africa and considering partnerships for crypto on- and off-ramps and stablecoin wallet offerings. Stablecoins can significantly reduce remittance costs, which currently average 6.6%, by minimizing intermediaries and enabling near-instant settlements. Despite the positive outlook, concerns persist regarding potential risks from private currency issuance, as noted by Senator Elizabeth Warren. The growing interest in stablecoins is evident among banks and retailers, with expectations for widespread adoption by 2026 as compliance frameworks mature.
