Global remittance giant Western Union is making its foray into the crypto industry through stablecoin. According to its CEO Devin McGranahan, the company is exploring stablecoin use in digital wallets and plans to build on/off ramps.
Stablecoins are witnessing mainstream acceptance since the passage of the GENIUS Act. Companies like Western Union are leveraging the passage to integrate stablecoins into their digital wallet. Implementing this initiative will allow clients to trade stablecoins.
McGranahan Cites Reason for the Exploration
Devin McGranahan cites potential for faster cross-border transfers, better fiat conversion, and value storage in unstable economies, for considering stablecoin rollout. “We see stablecoin really as an opportunity, not as a threat. We’re 175 years old, and we’ve been innovative across those 175 years. And stablecoin is just yet one more opportunity to innovate.”
Western Union’s entry into the stablecoin market comes after President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins, also known as the GENIUS Act, last week. The legislation regulates stablecoin issuance in the United States, warranting banks, corporations, and other regulated entities to comply with strict reserve and disclosure requirements. It mandates annual audit of issuers with a market cap exceeding $50 billion.
Trump, after signing the GENIUS Act, said the landmark bill will cement America’s position as a leader in global finance and crypto technology. Following the establishment of the Stablecoin Act, Western Union now has regulatory clarity to make its move legally and confidently.
Why This Move Is Essential to Western Union
Using stablecoins will make cross-border transfers cheaper and faster. Transactions that typically take a week to complete will happen in minutes, with fees around 1%, compared to the conventional remittance cost of 6-7%. Also, Western Union’s plan to integrate on/off ramps will help users store stablecoins in partner wallets or in-app. It would allow seamless fiat to crypto conversions, which can be beneficial in volatile economies with high inflation concerns.
Delving into stablecoins now puts the company in a competitive position. Other Fintech firms, such as MoneyGram and PayPal, have already implemented stablecoin payments, with the latter even launching its own PUSD. Western Union’s entrance into the market means it won’t risk losing any more market share than it had already lost.
What’s Next for Western Union?
After making such an announcement, the company will gear up to ensure the initiative launches successfully. It’s not known if Western Union will launch its proprietary stablecoin or collaborate with issuers like Circle. Launching its stablecoin will generate revenue through interest on reserve assets, just as Circle generated $1.7 billion in yield from USDC reserves in 2024.
The point is rolling out a stablecoin feature will significantly save costs and enhance user adoption across Latin America and Africa. The success of this pilot will encourage other remittance companies and even payment gateways to enter the stablecoin space.
The idea to roll out a stablecoin first surfaced in May 2025, when JPMorgan, Bank of America, Citigroup, and Wells Fargo held a joint discussion to create a stablecoin. This meeting was held in anticipation that Congress would pass the Stablecoin Act, which it eventually did.
Apparently, financial institutions now see on-chain assets as an opportunity to increase productivity and efficiency, not as threats to monetary policy. We expect more financial institutions to enter the stablecoin market, given that there’s a clearer regulatory framework for stablecoins.
