Western Union Revolutionizes Global Remittances with Stablecoin Settlement Pilot

Money transfer giant Western Union is testing stablecoin technology to transform cross-border payments—cutting settlement times from days to seconds.

The New Remittance Race

Western Union's pilot program bypasses traditional banking corridors, leveraging dollar-pegged stablecoins to move value across borders instantly. No more waiting for correspondent banks to wake up in different time zones.

Global Payment Infrastructure Overhaul

The 172-year-old money transfer company joins a growing list of financial institutions recognizing that blockchain settlement beats waiting three business days for funds to clear—unless you enjoy paying fees for the privilege of waiting.

Traditional finance finally discovers what crypto natives knew years ago: moving money shouldn't require more paperwork than buying a house.

Onchain Settlements Can Cut Costs and Speed Up Transfers

During the company’s third-quarter earnings call on Thursday, CEO Devin McGranahan said the pilot will focus on using onchain settlement rails to reduce reliance on traditional correspondent banking networks.

“We see significant opportunities to move money faster with greater transparency and at lower cost — without compromising compliance or customer trust,” McGranahan said.

The company has been exploring digital asset integration for months. Western Union first hinted at stablecoin adoption earlier this year but had held off due to concerns over volatility and unclear regulations.

McGranahan noted that the recent passage of the GENIUS Act, which provides a clearer regulatory framework for digital assets, has encouraged the company to move forward.

Stablecoins have become increasingly attractive to payment firms looking to reduce settlement times and costs.

The US Treasury Department said in April that the stablecoin market has surpassed $300 billion and could reach $2 trillion by 2028, signaling growing institutional interest.

Seems Western Union see's opportunity in stablecoins according to their Q3 earnings report. pic.twitter.com/iA5TGcZ5zP

Western Union believes stablecoins could be especially beneficial for users in high-inflation economies, where access to US dollar–backed assets helps preserve purchasing power.

“In many parts of the world, being able to hold a U.S. dollar–denominated asset has real value,” the company said in a statement, adding that such innovations align with its mission to “modernize the movement of money.”

The firm’s competitors are also accelerating their blockchain efforts. Zelle’s parent company, Early Warning Services, announced plans to integrate stablecoins for cross-border transactions.

Meanwhile, MoneyGram will soon launch a USDC-based savings and transfer app in Colombia, enabling near-instant international payments.

Banks Turn to Stablecoins as Competition Increases

In August, Citigroup CEO Jane Fraser confirmed the bank is “looking at the issuance of a Citi stablecoin” while developing tokenized deposit services for corporate clients seeking 24/7 settlement capabilities.

Earlier in June, JPMorgan also launched JPMD deposit tokens for institutional blockchain payments while CEO Jamie Dimon was questioning its use case.

The bank served as lead underwriter for Circle’s IPO, which has climbed over 500% since its $31 offering price.

It also appears that some institutions are showing approval to control stablecoins, as seen in the recent Bank of England’s proposal for strict ownership.

The bank caps between £10,000 and £20,000 for individuals and £10 million for businesses, which triggered widespread backlash.

As reported, Crypto.com is integrating Morpho, the second-largest DeFi lending protocol, into its platform to launch stablecoin lending markets directly on the Cronos blockchain.

The partnership will allow users to deposit wrapped versions of Bitcoin and ethereum (CDCBTC and CDCETH) and borrow stablecoins against them without leaving the Crypto.com ecosystem.