Company Company Company Western Union is set to pilot a StableCoin-based settlement system to modernize remittance operations for more than 150 million customers.
During the Western Union’s third-quarter earnings call Thursday, CEO Devin McGranahan said the pilot is “focused on harnessing the onchain settlement rails to reduce dependency on legacy banking systems, shorten settlement windows, 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.”
Western Union processes nearly 70 million transfers per quarter. Blockchain technology can offer significant advantages over traditional remittance rails and can benefit its customers located in more than 200 countries.
The crypto remittance platform’s latest comments come a little over three months after it was first hinted at Plan to integrate StableCoins for cross-border transfers.
McGranahan said that Western Union was initially deterred from crypto due to concerns around volatility, regulatory uncertainty and customer protection – however, the passage of the Genius Act changed that course.
The announcement also reflects the wider institutional adoption of StableCoins. This market recently exceeded $ 300 billion and is estimated to reach $ 2 trillion in 2028, according to the announcement of the US Treasury Department.
StableCoins can help those in countries with high inflation
Western Union says the StableCoin offering will give its customers more choice and control over how they manage and move their money – especially those in inflation designed countries.
“In many parts of the world, having a US dollar denominated asset has real value because inflation and currency devaluation can quickly erode an individual’s purchasing power. These innovations are closely aligned with our broader strategy to modernize the movement of money.”
Competitors Western Union are making similar moves
Early warning service, the payments platform’s parent company Zelle, said on Friday StableCoins will be included at Zelle to facilitate cross-border transactions for money flowing to and from the United States.
Related: Rumble Partners with Tether to add bitcoin tips for content creators
Meanwhile, Moneygram has confirmed that it will be released soon Crypto app in Colombia, Allows locals to save in USDC (USDC) StableCoin circle and receive and transfer it abroad almost instantly.
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