Western Union Pilot Aims to Modernize Global Remittances With Stablecoins

Western Union is preparing to test a stablecoin-powered settlement system as part of its effort to update global money transfer operations. The company says blockchain-based rails could help make transfers faster, clearer, and less expensive for millions of customers worldwide.

Good to Know

• Western Union serves more than 150 million customers globally
• Pilot focuses on faster settlement and reduced reliance on correspondent banks
• Stablecoin use particularly benefits users in high-inflation markets

Faster Cross-Border Transfers Through Stablecoins

During Western Union’s Q3 earnings call, CEO Devin McGranahan confirmed that the company is now ready to run a pilot that uses stablecoins for settlement. The program will explore how onchain transaction systems can replace or supplement the firm’s network of traditional correspondent banks.

McGranahan said the goal is to shorten settlement times, improve capital efficiency, and reduce costs while maintaining compliance and trust:

“We see significant opportunities for us to be able to move money faster with greater transparency and at lower cost without compromising compliance or customer trust.”

Western Union currently processes around 70 million transfers each quarter. With operations across 200+ countries, even small efficiency gains could create meaningful impact at scale.

Why Now?

Western Union initially avoided crypto-related settlement due to concerns about volatility, regulatory clarity, and consumer protection. However, the passage of the GENIUS Act and clearer federal guidelines have given the company a framework to experiment with regulated stablecoin systems.

This move also aligns with broader market trends. The stablecoin market recently passed $300 billion in circulating value and is projected to grow toward $2 trillion by 2028, according to U.S. Treasury estimates.

Helping Customers in High-Inflation Economies

Western Union noted that the new offering could be especially useful in regions experiencing inflation or currency devaluation. Holding value in a stablecoin pegged to the U.S. dollar allows users to preserve purchasing power in ways that local currencies may not.

The company stated:

“In many parts of the world, being able to hold a U.S. dollar-denominated asset has real value as inflation and currency devaluation can rapidly erode an individual’s purchasing power. These innovations align closely with our broader strategy to modernize the movement of money.”

Western Union has not yet disclosed which stablecoins or blockchain networks it plans to use, but it emphasized that compliance controls and customer safety will be prioritized. Results from the pilot are expected to influence broader rollout decisions.

FAQ

Is Western Union replacing its entire remittance system with crypto?

No. The pilot is focused on settlement infrastructure, not consumer-facing crypto trading or wallets.

Will customers need to use stablecoins directly?

Not necessarily. Users may continue sending and receiving local currencies while settlement occurs on blockchain rails in the background.

What makes stablecoins useful for remittances?

They allow near-instant transfer of value without depending on slow correspondent banking processes.