Western Union Bets on Stablecoins as Remittance Titans Feel the Heat
Money transfer dinosaurs are evolving—or trying to. Western Union just signaled it's ready to play the crypto game as legacy remittance giants face existential pressure.
The 170-year-old cash pipeline confirmed it's exploring stablecoin integrations, a move that reeks of defensive positioning against blockchain-native competitors eating their lunch.
When dinosaurs dabble in DeFi
This isn't innovation—it's survival. Traditional money transfer operators now face what Blockbuster felt seeing Netflix: an unstoppable tech wave threatening their 10% fee racket. Stablecoins offer near-free cross-border settlements that could vaporize their margins.
The irony? Western Union's own CEO admitted years ago that blockchain would 'absolutely' disrupt their business. Now they're buying shovels mid-gold rush.
Remittance 2.0: Cheaper, faster, unstoppable
New-gen platforms like Strike already move millions via Bitcoin's Lightning Network for pennies. Meanwhile, Western Union still charges $15 to send $200 to Mexico—because apparently maintaining a global agent network in 2025 justifies medieval tolls.
Watch this space: Either the old guard adapts fast, or they'll become expensive middlemen in a world that's moved on. Your move, boomer remittance giants.
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.
