**Western Union to Pilot Stablecoin-Based Settlement System for Faster, Transparent, and Lower-Cost Money Transfers**
Western Union announced plans to pilot a stablecoin-based settlement system aimed at enhancing the money transfer experience for its 150 million customers worldwide. The initiative was detailed by CEO Devin McGranahan during the company’s third-quarter earnings call, highlighting a strategic move towards leveraging blockchain technology to reduce dependency on traditional banking systems.
**Faster Settlements and Greater Transparency**
The upcoming pilot program will utilize blockchain settlement rails to streamline cross-border transfers, aiming to shorten settlement windows and improve capital efficiency. McGranahan emphasized the company’s commitment to moving money faster while maintaining high standards of compliance and customer 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,” McGranahan stated.
Western Union currently processes approximately 70 million transfers every quarter across more than 200 countries. Integrating blockchain technology and stablecoins could offer notable advantages over legacy correspondent banking systems for this global customer base.
**Shift in Crypto Strategy Following GENIUS Act**
Western Union’s approach to digital assets has evolved recently. The company initially avoided crypto due to concerns related to volatility, regulatory uncertainty, and protecting customers. However, the passage of the GENIUS Act addressed many of these concerns, prompting the company to reconsider stablecoin integration as part of its modernization strategy.
**Stablecoin Benefits for Customers in High-Inflation Regions**
The pilot stablecoin offering is designed to give customers more flexibility in managing and transferring funds. Western Union highlighted the particular benefits for individuals living in countries experiencing high inflation, where holding US dollar-denominated assets can protect purchasing power amid currency devaluation.
“In many parts of the world, being able to hold a US dollar-denominated asset has real value as inflation and currency devaluation can rapidly erode an individual’s purchasing power,” the company explained.
This aligns with Western Union’s broader goal to modernize how money moves across borders while serving evolving customer needs.
**Growing Stablecoin Market and Industry Trends**
The stablecoin market recently surpassed $300 billion in total value, with the US Treasury Department estimating growth to $2 trillion by 2028. This rapid expansion is influencing major players in the payments industry to adopt stablecoin technology.
Competitors are making similar moves: Early Warning Services, owner of payments platform Zelle, announced plans to integrate stablecoins to support cross-border transactions involving the United States. Meanwhile, MoneyGram is preparing to launch a crypto app in Colombia that enables users to save and transfer funds in Circle’s USDC stablecoin almost instantly.
**Western Union’s Entry Into Blockchain-Based Remittances**
With this pilot program, Western Union is joining a growing wave of financial service providers exploring blockchain and stablecoins to enhance remittance services. The company aims to balance innovation with regulatory compliance and maintaining customer confidence.
As the pilot progresses, Western Union’s stablecoin settlement system could mark a significant step forward in the evolution of global money transfers, offering faster, more transparent, and cost-effective solutions for millions worldwide.
https://coincentral.com/western-union-plans-stablecoin-pilot-program-for-cross-border-transfers/
