Financial services giant Western Union has announced plans to pilot a stablecoin-based settlement system, marking one of its most significant moves yet toward blockchain-powered remittances.
The initiative aims to modernize the company’s operations for its more than 150 million customers across 200 countries.
During the company’s third-quarter earnings call, CEO Devin McGranahan revealed that the pilot will leverage on-chain settlement rails to reduce dependence on legacy correspondent banking networks, shorten settlement windows, and enhance capital efficiency.
“We see significant opportunities to move money faster, with greater transparency and at lower cost, without compromising compliance or customer trust,” McGranahan said.
Western Union processes approximately 70 million money transfers each quarter, and blockchain technology promises faster, cheaper, and more transparent global payments.
The company stated that the stablecoin pilot will provide customers with greater flexibility and control, particularly in regions with high inflation, where holding dollar-denominated assets offers practical value.
McGranahan acknowledged that Western Union had previously been cautious about entering the crypto space due to concerns about volatility, regulation, and customer protection.
However, the recent passage of the GENIUS Act, which provides clearer regulatory guidelines for digital assets in the United States, has encouraged the firm to explore blockchain-based solutions more actively.
The announcement underscores a broader trend of institutional adoption of stablecoins, as global demand for blockchain settlements continues to rise. According to a recent report from the U.S. Treasury Department, the stablecoin market has surpassed $300 billion and is expected to reach $2 trillion by 2028.
Western Union’s pilot marks a critical step in its evolution toward becoming a digital-first payments platform, aligning with its strategy to modernize global remittances.
By integrating blockchain technology, the company aims to reduce costs, improve transaction speed, and reshape how money moves across borders, bringing traditional finance closer to the decentralized future.