Western Union eyes faster remittances with stablecoins
Stablecoins could help remittance firms bypass legacy systems and reduce fees below the UN’s 3% target.
Western Union has begun exploring stablecoin use for remittances, viewing the technology as an opportunity amid rising competition and regulatory clarity. CEO Devin McGranahan revealed that the firm is testing new cross-border settlement processes in regions such as South America and Africa.
Stablecoins could enhance speed, lower costs, and offer value-storing options for customers in weaker-currency markets.
The move follows the recent passage of the GENIUS Act in the US, which provides a formal legal framework for issuing and trading stablecoins. The law is already prompting banks, retailers, and financial service providers to experiment with stablecoin applications.
Western Union is reportedly considering crypto wallet services and partnerships to act as a crypto on- and off-ramp.
According to OwlTing CEO Darren Wang, interest in stablecoins has surged, with monthly business inquiries rising significantly since May. He believes regulatory frameworks like the GENIUS Act and Europe’s MiCA will help stablecoins reach widespread adoption by 2026.
He emphasised that stablecoins can cut remittance costs below the UN’s 3% target, while providing instant, round-the-clock settlements.
Global interest for stablecoins continues to grow, with firms like Walmart, Amazon, JD.com, and Alipay reportedly exploring stablecoin integration.
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