Global payments leader Western Union is taking a major step toward blockchain-powered remittances with plans to pilot a stablecoin-based settlement system.
The initiative marks the company’s most significant move yet into digital assets, aiming to modernize its processing of 70 million money transfers each quarter for more than 150 million customers across 200 countries.
During its third-quarter earnings call, Western Union, which reported $1.03 billion in revenue compared to the same period last year, emphasized that the company is executing a broader transformation strategy.
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“As we advance our strategy, we are diversifying and making meaningful progress in broadening our Consumer Services offerings, deepening our presence across key markets, and embedding a more efficient operating model to drive sustainable growth”.
Western Union President and CEO Devin McGranahan stated that the company is preparing to pilot a stablecoin-based settlement system, noting that the feature will focus on using on-chain settlement rails to reduce reliance on traditional correspondent banking systems, which are often slow and expensive. “We see significant opportunities to move money faster with greater transparency and at lower cost — without compromising compliance or customer trust,” he said.
Western Union’s move comes after months of exploring digital asset integration. Earlier this year, the company hinted at possible stablecoin adoption but delayed its plans due to market volatility and unclear regulations. The recent passage of the GENIUS Act, signed into law by U.S. President Donald J. Trump on June 18, 2025, has provided the clarity needed to move forward.
The GENIUS Act establishes a comprehensive regulatory framework for stablecoins, allowing banks and chartered financial institutions to issue or sponsor them. This integration of stablecoins into existing banking rails, covering custody of reserves and fiat on/off ramps, creates a secure foundation for enterprise-level pilots like Western Union’s.
According to the company, stablecoins could deliver particular benefits to customers in high-inflation economies, where access to U.S. dollar–backed, digital assets help preserve purchasing power. “In many parts of the world, being able to hold a U.S. dollar–denominated asset has real value,” Western Union said, adding that the pilot aligns with its mission to modernize the global movement of money.
Western Union is not alone in this shift. Competitors such as MoneyGram, Visa, Early Warning Services, the parent company of Zelle, have also announced plans to integrate stablecoins for cross-border payments.
Implications for the Remittance Industry
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Faster, cheaper settlement could reduce fees: This is good for remittance senders and recipients (especially in lower-income corridors). Coverage suggests cost reductions “up to 95%” in some contexts.
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Potential shift in the value chain: If settlement is handled via stablecoins, correspondent banks may see diminishing roles; fintechs and token infrastructure providers may capture more value.
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Greater access for underserved markets: Regions with weak banking infrastructure or high currency volatility could benefit significantly from digital rail adoption.
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A signal for large incumbents: Western Union’s move may embolden other large remittance players and banks to accelerate stablecoin/ tokenised-settlement experimentation. For example, Visa has announced similar pilots.
As blockchain-based settlement becomes more practical and regulated, Western Union’s pilot could mark a turning point for the global remittance sector, particularly across Africa, Latin America, and Asia, transforming stablecoins from niche experiments into mainstream financial infrastructure.