Western Union to Integrate Stablecoins into Money Transfers

Western Union to launch stablecoin pilot project for transactions.

Western Union has launched a pilot project for transactions using stablecoins. This was revealed during a conference call discussing the financial results for the third quarter.

The initiative is part of a strategy to modernize money transfers for over 150 million customers.

According to Western Union CEO Devin McGranahan, the project will reduce reliance on traditional correspondent banks, shorten transaction times, and enhance capital efficiency.

“We see an opportunity to move money faster, more transparently, and at lower costs without compromising compliance or customer trust,” said McGranahan.

Previously, Western Union avoided dealing with cryptocurrencies due to their volatility and regulatory uncertainty. The company’s stance changed following the enactment of the GENIUS Act.

Western Union believes that stablecoins will give customers more control over their money. This is particularly relevant for users in countries with high inflation, allowing them to hold assets in US dollars.

Digital Transformation

The company reported that digital transactions now account for 55% of total transfers. Revenue from the branded digital segment has grown for the eighth consecutive quarter, increasing by 6%.

A key focus has been the expansion of digital wallets. The service has been launched in seven countries, including the US and Brazil, with the number of users exceeding 500,000. In Argentina, 15% of payments are made through wallets.

Western Union is also exploring integration with cryptocurrency companies for exchanging fiat and virtual assets.

In the consumer segment, revenue grew by 49%. The main driver is travel money services, which could reach $150 million by 2026.

TradFi and Stablecoins

In June, the crypto asset division of the French financial conglomerate Societe Generale, SG-FORGE, announced the launch of the USD CoinVertible stablecoin.

In September, major European banks formed a consortium to issue a euro-pegged stablecoin in compliance with MiCA legislation. Participants include ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International.

Back in October, the 175-year-old French bank ODDO BHF announced the launch of the EUROD stablecoin pegged to the euro on the Polygon network.

Later, Early Warning Services, which manages the digital payment network Zelle, launched an initiative to integrate stablecoins for international transfers.