Western Union is testing stablecoin-powered settlement systems for global remittances, as announced by CEO Devin McGranahan during the company’s Q3 2025 earnings call, targeting South America and Africa.
The initiative seeks to decrease reliance on correspondent banks, enhance settlement efficiency, and reduce remittance costs by up to 95%, signaling a significant shift in cross-border payment dynamics.
Western Union has announced a pilot program leveraging stablecoin technology for its global remittance services. This initiative, as outlined by CEO Devin McGranahan, aims to lower fees and improve transaction speeds using stablecoins like USDC.
Western Union is implementing this pilot to reduce dependence on traditional banking partners and enhance efficiency. It is a strategic move, notably involving the use of USDC and other stablecoins, to meet customer needs for affordable remittance options.
Potential 95% Cost Reduction in Remittances
The stablecoin initiative might transform remittances by cutting costs and increasing speed. The pilot could drive competition in the sector, impacting firms like MoneyGram, which have taken similar steps.
Experts predict potential financial, regulatory, and technological benefits. The use of stablecoins could cut remittance fees by up to 95%, aligning with trends set by regulatory changes like the GENIUS Act in the U.S., which supports broader stablecoin adoption. Devin McGranahan, CEO, Western Union, states, “This is not about speculation. It is about giving our customers more choice and control in how they manage and move their money.” source
Comparative Analysis: Western Union vs. MoneyGram
This stablecoin initiative can be compared to MoneyGram’s integration of USDC via Stellar, which has seen significant success in Africa and South America. Such moves highlight increasing institutional adoption of blockchain technology.
Industry insights suggest Western Union’s pilot is part of a concerted effort to utilize the GENIUS Act’s framework. Historical trends indicate these steps could lead to higher stablecoin volumes and enhanced cross-border payment efficiencies. Exploring insights from sources like Asia’s leading crypto developments, which include ETFs and new stablecoins, offers further context.
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