Western Union Confirms Dollar-Backed Stablecoin for Cross-Border Remittances

Western Union has officially unveiled plans to launch a dollar-backed stablecoin, targeting faster global remittances in markets where regulatory conditions permit. CEO Devin McGranahan confirmed the initiative, emphasizing its potential to address currency instability in emerging economies.

The stablecoin solution aims to bypass traditional banking rails, reducing transfer times from days to near-instantaneous settlements. This strategic MOVE leverages recent regulatory advancements, including the GENIUS Act, which has opened doors for traditional financial institutions to explore digital currency solutions.

Western Union's pilot program focuses on non-U.S. markets, positioning the 170-year-old remittance giant to compete with crypto-native payment platforms. The company's existing infrastructure and compliance framework could accelerate mainstream adoption of stablecoins for cross-border transactions.