Western Union Eyes Stablecoin Integration as GENIUS Act Spurs Industry Shift
Global remittance powerhouse Western Union is exploring the rollout of stablecoin services within its digital wallet infrastructure, signaling growing legacy interest in crypto following the passage of the GENIUS Act.
Legacy Remittance Giant Enters Stablecoin Race
Western Union is preparing to integrate stablecoins into its digital wallet ecosystem, signaling a strategic move by the 175-year-old remittance firm to modernize cross-border payments. CEO Devin McGranahan confirmed that the company is actively exploring stablecoin partnerships for on- and off-ramp services, allowing users to buy and sell crypto assets within a regulated framework.
The move comes amid growing optimism around stablecoins in traditional finance, driven by recent legislative developments and a push for faster, more cost-effective payment solutions.
GENIUS Act Triggers Industry-Wide Momentum
Western Union’s stablecoin exploration follows the enactment of the U.S. GENIUS Act, a sweeping federal law establishing regulatory clarity for stablecoins. Signed into law by President Donald Trump, the legislation mandates full backing of stablecoins by liquid reserves such as U.S. dollars, along with annual audits for major issuers exceeding $50 billion in market cap. It also outlines issuance rules for foreign entities operating in the U.S. market.
Industry players view this legal clarity as a green light to accelerate pilot programs and adoption timelines. Regulatory certainty, combined with growing demand for always-on settlement systems, has set the stage for legacy institutions like Western Union to adapt.
Faster Payments, Lower Costs, and Global Reach
McGranahan highlighted stablecoins’ potential to drive three core improvements: instant cross-border transfers, seamless conversion between digital and fiat currencies, and a more reliable store of value for users in volatile economies. He emphasized that the innovation aligns with Western Union’s long-standing mission to evolve with the financial landscape.
The company is already piloting settlement innovations in regions such as Africa and South America and working with infrastructure partners to streamline foreign exchange conversion. These efforts aim to reduce friction in the remittance process, a space where stablecoins are increasingly competitive.
Stablecoins Push Legacy Firms Toward Innovation
The appeal of stablecoins lies in their ability to reduce global remittance fees, which still average around 6.6%, according to OwlTing CEO Darren Wang. With near-instant settlement and round-the-clock availability, stablecoins offer a viable path to meeting the UN’s target of sub-3% transfer costs by eliminating intermediaries and minimizing FX markups.
Analysts predict a sharp rise in stablecoin adoption by 2026 as regulatory frameworks like the GENIUS Act in the U.S. and Europe’s MiCA mature, allowing for deeper integration into mainstream financial workflows.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
source : https://cryptodaily.co.uk