Western Union embraces stablecoins to modernize international transfers

Western Union, a financial services company with over 150 million clients, will pilot a stablecoin-based transfer system to modernize its remittance operations.

CEO Devin McGranahan stated during the third-quarter earnings call that the pilot aims to “leverage on-chain settlement networks to reduce reliance on traditional banking systems, shorten settlement times, and improve capital efficiency.”

Western Union processes approximately 70 million transfers per quarter. Implementing blockchain technology could lower costs, increase transparency, and accelerate international transfers across more than 200 countries.

The company had previously refrained from integrating cryptocurrencies due to volatility, regulatory uncertainty, and customer protection concerns. The passage of the GENIUS Act has enabled the pilot of stablecoin-based cross-border transfers.