thecryptobasic.com
Global payments leader Western Union is preparing to launch a stablecoin-based settlement pilot, marking its most significant move toward blockchain-powered remittances.
Specifically, the pilot aims to improve the company’s approach to managing its extensive payment network, which processes 70 million transactions quarterly across 200 countries and serves over 150 million customers worldwide.
Speaking during the firm’s third-quarter earnings call, CEO Devin McGranahan stated that the program will explore using blockchain-based settlement channels to reduce dependence on traditional banking intermediaries.
Regulatory Clarity Enables Innovation
Western Union’s renewed confidence stems from the recent passage of the GENIUS Act. Indeed, the legislation provides a more transparent regulatory framework for stablecoins, thereby supporting the company’s enhanced outlook.
McGranahan said the new legislation gives companies like Western Union “the clarity needed to innovate responsibly” within the financial system.
Stablecoins are tools to streamline settlements and reduce transaction costs in the remittance sector.
Stablecoins Gain Momentum Across Financial Institutions
In April, the U.S. Treasury Department reported that the stablecoin market, which has surpassed $300 billion, could grow to $2 trillion by 2028. This surge highlights growing institutional and consumer confidence in blockchain-based payment systems.
Western Union believes stablecoins could particularly help customers in high-inflation markets, where holding U.S. dollar–backed assets preserves value.
“Access to stable dollar assets is meaningful for many users globally,” the company said in a statement.
Competitors Accelerate Blockchain Adoption
Western Union’s move follows similar developments among major payment firms. For instance, Early Warning Services, the parent company of Zelle, recently announced plans to integrate stablecoins for cross-border payments. Meanwhile, MoneyGram is preparing to launch a USDC-based app in Colombia, offering near-instant savings and transfers.
On the crypto side, Crypto.com has partnered with Morpho, a leading DeFi lending protocol, to introduce stablecoin lending markets on its Cronos blockchain.
The collaboration will let users deposit wrapped Bitcoin and Ethereum as collateral and borrow stablecoins within the same ecosystem.
Banks Join the Stablecoin Race
Traditional banks are also entering the stablecoin arena. In August, Citigroup announced plans to develop a Citi-branded stablecoin and explore tokenized deposits designed to enable uninterrupted settlement services for corporate clients.
In June, JPMorgan introduced JPMD deposit tokens to streamline blockchain-based payments for institutional clients.