Western Union has become the latest financial giant to signal interest in stablecoins, as competition heats up in the global remittance market and regulatory clarity improves.
Speaking to Bloomberg on Tuesday, CEO Devin McGranahan said the firm saw three opportunities for stablecoin use around faster cross-border payments, better fiat conversion options in harder-to-reach markets, and offering a store-of-value product for customers in countries with weaker currencies.
“We see stablecoins really as an opportunity, not as a threat,” he said.
McGranahan’s comments follow a surge of interest in stablecoins across the financial sector as regulatory clarity emerges.
Last week, President Donald Trump signed the GENIUS Act into law, establishing a formal U.S. framework for issuing and trading stablecoins.
The move is expected to accelerate adoption by banks, retailers, and traditional finance players, many of whom have recently expressed interest in entering the space.
Western Union is already running pilots for new settlement processes in regions such as South America and Africa, McGranahan said, and is working with infrastructure firms to improve foreign exchange conversion and the speed of settlement.
The company is also exploring partnerships to act as an on- and off-ramp for crypto in certain jurisdictions and considering stablecoin wallet offerings.
“It’s exciting to see industry giants like Western Union exploring stablecoins, and it’s easy to see why,” Darren Wang, founder and CEO at Taiwanese blockchain technology company OwlTing Group, told Decrypt.
“Stablecoins offer a faster, cheaper, and more flexible alternative to traditional banking systems,” he said.
A greater cost
OwlTing, which has partnered with Western Union competitor MoneyGram on stablecoin projects, has seen ”double-digit monthly inquiries” from businesses interested in using stablecoins since May, according to Wang.
He pointed out that part of their appeal is because the average global remittance fee still sits at 6.6%.
Stablecoins, meanwhile, can reduce costs well below the UN’s 3% target by cutting intermediaries and FX markups. Settlements are typically near-instant and operate 24/7, unlike legacy systems.
“Regulatory clarity, like the U.S. GENIUS Act and Europe’s MiCA, is accelerating this move,” Wang added. “I’d expect major players to wrap up exploration or pilots by late 2025, with widespread adoption hitting in 2026 as compliance frameworks and tech integrations such as APIs and treasury workflows become mature.”
Despite the momentum, some remain skeptical.
In the U.S., Senator Elizabeth Warren previously warned that allowing the GENIUS Act to pass could open the door for tech billionaires to issue private currencies.
“If Congress doesn’t fix it, billionaires like Elon Musk, Jeff Bezos, and Mark Zuckerberg could launch stablecoins that track your purchases, exploit your data, and squeeze out competitors,” she warned. “Then they’ll come begging for a bailout when it inevitably blows up.”
Her comments followed not just announcements from banks around exploring stablecoins but retail giants like Walmart and Amazon. Further afield, Chinese giants JD.com and Alipay are pursuing regulatory approvals for stablecoin offerings in international markets.
While some corridors still pose challenges in terms of infrastructure and conversion fees, Wang also noted growing uptake among SMEs and migrant worker platforms, particularly for payments into Africa, where transparency and speed often outpace traditional banks.
“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,” he said.
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