Money giant Western Union to pilot stablecoin-powered transfers

Western Union is set to pilot a stablecoin-based settlement system aimed at modernizing its remittance services for over 150 million customers. CEO Devin McGranahan outlined the pilot's focus on leveraging onchain settlement methods to minimize reliance on traditional banking systems, thereby shortening settlement times and enhancing capital efficiency. The move is seen as an opportunity to enable faster, more transparent, and cost-effective money transfers, all while maintaining compliance and customer trust. Although Western Union hesitated to enter the crypto space due to volatility and regulatory concerns, the passage of the GENIUS Act has encouraged this shift. The stablecoin initiative will particularly benefit customers in high-inflation regions, where a US dollar-denominated asset can preserve purchasing power. This pilot reflects a broader trend of institutional adoption of stablecoins, which have a growing market projected to reach $2 trillion by 2028. Competitors like Zelle and MoneyGram are also exploring similar integrations to enhance cross-border transactions.

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