Catenaa, Friday, October 31, 2025- Western Union is set to pilot a stablecoin-based settlement system to modernize its global remittance operations, aiming to make cross-border money transfers faster, cheaper, and more transparent.
The initiative will leverage onchain settlement rails, reducing reliance on traditional correspondent banking networks. CEO Devin McGranahan said the pilot could streamline Western Union’s roughly 70 million quarterly transfers, serving over 150 million customers across 200 countries.
The company has been exploring digital asset integration for months, previously delaying adoption due to volatility concerns and unclear regulation.
The recent passage of the GENIUS Act, which establishes a clear regulatory framework for stablecoins, prompted Western Union to move forward.
Stablecoins are increasingly attractive to payment firms, particularly in high-inflation economies where access to U.S. dollar–pegged assets preserves purchasing power. The global stablecoin market recently surpassed $300 billion and is projected to reach $2 trillion by 2028.
Competitors are also accelerating blockchain adoption. Early Warning Services, parent company of Zelle, announced plans for stablecoin-based cross-border transfers, while MoneyGram will launch a USDC-based transfer and savings app in Colombia.
Major banks are exploring stablecoin issuance for institutional settlements, with Citigroup and JPMorgan testing tokenized deposit services.
Western Union’s pilot reflects broader institutional interest in integrating blockchain technology into mainstream financial infrastructure.
The company said such innovations align with its goal of modernizing the movement of money while maintaining regulatory compliance and customer trust.
