**Western Union to Pilot Stablecoin-Based Settlement System for 150 Million Customers**
Western Union has announced plans to pilot a stablecoin-based settlement system aimed at reducing its reliance on traditional banking networks. The initiative, unveiled during the company’s third-quarter earnings call, could impact Western Union’s extensive customer base of 150 million worldwide.
CEO Devin McGranahan shared details of the pilot program, emphasizing its goal to leverage blockchain settlement rails to shorten settlement times and improve capital efficiency. “We see significant opportunities for us to be able to move money faster with greater transparency and at lower cost without compromising compliance or customer trust,” McGranahan said.
Currently, Western Union processes approximately 70 million transfers each quarter across more than 200 countries. By integrating blockchain technology, the company hopes to modernize and streamline its global remittance services.
### Shifting Approach to Cryptocurrency
Western Union had previously been cautious about adopting cryptocurrencies due to concerns over volatility, regulatory uncertainty, and customer protection. However, this stance evolved following the passage of the GENIUS Act, which addressed many of these issues by providing clearer regulatory guidelines.
With these changes, Western Union is now exploring the use of stablecoins — digital assets pegged to stable reserves like the US dollar — as part of its money transfer infrastructure.
### Benefits for High-Inflation Regions
The company highlights that stablecoins offer particular advantages for customers in countries facing high inflation. In these regions, holding US dollar-denominated assets helps protect individuals’ purchasing power from rapid currency devaluation.
“In many parts of the world, being able to hold a US dollar-denominated asset has real value as inflation and currency devaluation can rapidly erode an individual’s purchasing power,” Western Union stated.
The move towards stablecoins aligns with Western Union’s broader strategy to modernize how money is moved globally.
### Industry-Wide Shift Toward Stablecoins
The stablecoin market has grown substantially, recently surpassing $300 billion in total value. According to a US Treasury Department estimate from April, the market could expand to $2 trillion by 2028.
Western Union’s competitors are also embracing stablecoins. Early Warning Services, which owns the popular payments platform Zelle, announced plans to integrate stablecoins to facilitate cross-border transactions involving the United States.
Similarly, MoneyGram is preparing to launch a crypto app in Colombia that enables users to save and transfer Circle’s USDC stablecoin internationally with near-instant settlement.
### Looking Ahead
Western Union’s stablecoin pilot marks a significant step into blockchain-based remittance services, reflecting a broader industry trend towards digital asset integration. The program aims to enhance speed, transparency, and cost-efficiency in money transfers while maintaining strict compliance standards and safeguarding customer trust.
As the pilot progresses, it could pave the way for a new era in how global money transfers are conducted, especially benefiting customers in inflation-sensitive regions and expanding options for secure, fast cross-border payments.
https://coincentral.com/western-union-plans-stablecoin-pilot-program-for-cross-border-transfers/
