Western Union Eyes Stablecoins as Remittance Giants Face Outward Pressure

Western Union Eyes Stablecoins Amid Increasing Competition

Western Union has emerged as the latest major financial institution to signal strategic interest in stablecoins, driven by escalating competition in the global remittance sector and the improved regulatory landscape surrounding digital currencies.

CEO Devin McGranahan told Bloomberg this week that the company identifies three key opportunities for stablecoin application: faster cross-border payments, enhanced access to fiat conversion options in underserved markets, and providing a store-of-value product for customers in nations with weaker currencies.

McGranahan characterized the exploration positively, stating, “We see stablecoins really as an opportunity, not as a threat.”

His comments follow heightened sector interest following last week’s passage of the GENIUS Act by the U.S. Congress. The legislation establishes a formal framework for stablecoin issuance and trading.

The move is expected to accelerate adoption by traditional financial institutions, retail players, and banks, many of which have recently announced their own explorations into the stablecoin space.

Western Union is currently operating pilot programs for new settlement processes in regions including South America and Africa. The firm is also developing improvements to foreign exchange conversion and settlement speed.

Additionally, the company is exploring partnerships to facilitate cryptocurrency inflows and outflows in specific jurisdictions, and is considering the launch of stablecoin wallet services.

According to Darren Wang, founder and CEO of Taiwanese blockchain technology company OwlTing Group, Western Union’s entry is significant. He told Decrypt, “It’s exciting to see industry giants like Western Union exploring stablecoins, and it’s easy to see why.” He emphasized that stablecoins offer a faster, cheaper, and more flexible alternative to traditional banking systems.

A Greater Cost: Stablecoin Potential in Remittances

Wang noted that OwlTing, which collaborates with Western Union rival MoneyGram on stablecoin projects, has received “double-digit monthly inquiries” from businesses since May expressing interest.

A major driver of this interest is the persistent high cost of traditional remittances, with the average global sending fee remaining at 6.6%. Stablecoins offer a mechanism for substantially lower costs, significantly below the UN’s target of 3%, by minimizing intermediaries and FX markups, while enabling near-instant, 24/7 settlement unavailable in legacy systems.

“Regulatory clarity, exemplified by the U.S. GENIUS Act and regulations in Europe like MiCA, is accelerating this transition,” Wang added. “I’d expect major players to complete their exploration or pilot programs by late 2025, with widespread adoption likely occurring in 2026 as compliance structures and technical integrations mature.”

Despite the growing momentum, skepticism persists. U.S. Senator Elizabeth Warren voiced concerns that the GENIUS Act could permit tech billionaires to issue private currencies.

In related news, exposure to stablecoins emerged not only from traditional financial institutions like Western Union but also from major retailers such as Walmart and Amazon, and tech companies including JD.com and Alipay seeking regulatory approvals in international markets.

While challenges related to infrastructure and conversion fees exist in some regions, stablecoins are gaining traction among SMEs and specific platforms, particularly for payments into Africa where the technology offers advantages of transparency and speed.

Ultimately, Wang predicts, “I think the future winner will be the one who eliminates [as many] intermediaries as possible and provides a total solution within the payment ecosystem.”