Western Union wants to introduce stablecoins into its cross-border payment offerings as it seeks to innovate and keep up with the evolving financial landscape.
While speaking with Bloomberg in an interview on Monday, CEO Devin McGranahan revealed that the 175-year-old company is researching the possibilities of how stablecoins can improve the provision of its services, ranging from faster cross-border transfers, simple fiat-stablecoin conversion, and a store of value for uncertain economies.
McGranahan further emphasized that Western Union sees stablecoins as an opportunity and not a threat, highlighting that the company is also exploring talks with top crypto firms for potential partnership.
These would allow it to further develop on-ramp and off-ramp services and potentially offer a digital wallet solution to consumers. He stated, “Stablecoin is just yet one more opportunity to innovate.”
Although this renewed push into digital assets appears more serious, Western Union has previously tested the crypto waters. In 2015, it partnered with Ripple to test blockchain-based remittance settlements. In 2022, it filed three trademarks for crypto-related services.
The company has reportedly been testing stablecoin settlements in Africa and South America, although no full-scale rollouts have occurred.
The firm’s timing aligns with the passage of the GENIUS Act in the United States last week, which introduces clear regulatory frameworks for stablecoin issuers.
Signed into law on Friday, the bill mandates one-to-one reserves for stablecoins, outlaws unbacked algorithmic models, and gives senior creditor rights to holders in case of insolvency. It also mandates compliance with Anti-Money Laundering legislation.
Circle chief strategy officer Dante Disparte testified in support of the law, adding that the law will level the playing field and prevent large technology or banking corporations from cornering the market. He went on to say that future issuers of stablecoins will need to look more like Circle and less like traditional banks.
With regulations firmly in place and crypto adoption growing worldwide, Western Union’s fresh interest in stablecoins may be a turning point for how traditional finance accepts blockchain-based payments.
