Western Union Eyes Stablecoins for Faster Cross-Border Payments Amid Regulatory Clarity

Western Union, a prominent player in the global remittance market, has expressed interest in stablecoins as the competition in the sector intensifies and regulatory clarity improves. CEO Devin McGranahan highlighted three key opportunities for stablecoin use: faster cross-border payments, better fiat conversion options in harder-to-reach markets, and offering a store-of-value product for customers in countries with weaker currencies. McGranahan views stablecoins as an opportunity rather than a threat, aligning with the growing interest in stablecoins across the financial sector as regulatory frameworks become clearer.

McGranahan's comments come after the signing of the GENIUS Act into law, which establishes a formal U.S. framework for issuing and trading stablecoins. This move is expected to accelerate adoption by banks, retailers, and traditional finance players, many of whom have recently expressed interest in entering the stablecoin space. Western Union is already running pilots for new settlement processes in regions such as South America and Africa, focusing on improving foreign exchange conversion and the speed of settlement. The company is also exploring partnerships to act as an on- and off-ramp for crypto in certain jurisdictions and considering stablecoin wallet offerings.

Darren Wang, founder and CEO at OwlTing Group, a blockchain technology company, noted that stablecoins offer a faster, cheaper, and more flexible alternative to traditional banking systems. He pointed out that the average global remittance fee still sits at 6.6%, and stablecoins can reduce costs well below the UN’s 3% target by cutting intermediaries and FX markups. Settlements with stablecoins are typically near-instant and operate 24/7, unlike legacy systems. Wang also highlighted that regulatory clarity, such as the U.S. GENIUS Act and Europe’s MiCA, is accelerating the adoption of stablecoins. He expects major players to wrap up exploration or pilots by late 2025, with widespread adoption hitting in 2026 as compliance frameworks and tech integrations mature.

Despite the momentum, there are skeptics who warn about the potential risks. Senator Elizabeth Warren previously expressed concerns that allowing the GENIUS Act to pass could open the door for tech billionaires to issue private currencies, potentially leading to data exploitation and market manipulation. Her comments followed announcements from various banks and retail giants exploring stablecoins, including 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, there is growing uptake among SMEs and migrant worker platforms, particularly for payments into Africa, where transparency and speed often outpace traditional banks.

Wang noted that the future winner in the stablecoin space will likely be the one who eliminates as many intermediaries as possible and provides a total solution within the payment ecosystem. This aligns with Western Union's strategic move to explore stablecoins, aiming to enhance its services and stay competitive in the evolving remittance market. As regulatory frameworks continue to develop, the adoption of stablecoins is expected to grow, offering new opportunities for faster, cheaper, and more efficient cross-border payments.