Western Union is accelerating its push into digital assets as it looks to modernize its global remittance operations.
During the company’s third-quarter earnings call, CEO Devin McGranahan announced that Western Union has begun testing stablecoin-based settlement systems. The initiative aims to streamline international money transfers and improve liquidity management.
Western Union Tests Stablecoin Deals After US Rule Change
According to him, Western Union previously maintained a cautious stance towards cryptocurrencies, citing volatility, unclear regulations, and customer protection risks.
However, that focus is changing due to the improved regulatory environment in the United States.
McGranahan said the recent passage of the GENIUS Act has clarified the federal rules for the issuance and use of stablecoins. This new framework gives traditional payment companies more confidence to adopt blockchain-based solutions.
As a result, Western Union has begun testing stablecoin-enabled tools within its treasury operations. These pilots use blockchain settlement pathways to reduce dependence on correspondent banks, accelerate cross-border settlements, and improve capital efficiency.
“We are exploring how our global payments network can serve as an on- and off-ramp between fiat and digital currencies,” he added.
Beyond that, the remittance giant is expanding its partnerships with digitally native companies. These companies aim to leverage Western Union’s infrastructure in regions where banking access remains limited but cryptocurrency adoption is growing.
“This is not about speculation. This is about giving our clients more choice and control over how they manage and move their money,” McGranahan said.
Meanwhile, the company’s digital transformation goes beyond stablecoin pilots.
Western Union is renewing its technology and investing in global digital payment methods. It is also expanding its digital wallet offering in Latin America, Africa and Southeast Asia, where demand for remittances is high and blockchain adoption is accelerating.
Western Union’s renewed interest in stablecoins comes as competitors adopt similar tools. MoneyGram already supports payments in USDC ($1.00) and Remitly recently launched a multi-currency wallet that supports fiat and digital tokens.
These developments highlight a broader trend in which stablecoins are becoming instrumental in reducing cross-border transfer costs and improving liquidity for global payment providers.
Stablecoins can reduce remittance costs by up to 95% and reduce global average fees from around 6.6% to less than 3%. This has resulted in a sharp rise in cryptocurrency-based payments, which have increased 70% this year to over $10 billion.
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