Western Union announced a strategic expansion of stablecoin usage to optimize international transfers and develop its digital services segment.
Western Union, one of the world’s largest money transfer operators with revenues around $1 billion, is actively entering the digital assets market, including stablecoins. The company is already implementing innovative cross-border payment solutions and is considering launching storage and exchange functions for stablecoins within its own digital wallets. This was stated by Devin McGranahan, CEO of Western Union, in an interview with Bloomberg.
Western Union views stablecoins as a means to improve three key use cases, including:
- Accelerating cross-border transfers, directly enhancing user experience and reducing costs.
- Converting stablecoins into fiat currencies, especially in regions with limited access to national currencies.
- Providing customers abroad the option to use stablecoins as a store of value, particularly in countries with high inflation.
In South America and Africa, Western Union is testing faster settlements and local currency conversion in cooperation with several infrastructure providers. Negotiations are underway with partners to create global on-ramp and off-ramp solutions, including services for buying and selling stablecoins via the company’s payment network.
The company is also considering adding stablecoin support to Western Union’s digital wallets, enabling clients to accumulate, exchange, and use digital assets. The growth of Western Union’s digital segment significantly outpaces its traditional retail business, with payout volumes to accounts and e-wallets growing over 30% in most regions.
Despite tighter immigration policies in the U.S., the company reports only a moderate decline in transfer volumes, as its core customer base is already integrated into the American economy and continues sending funds to families abroad. Meanwhile, 60% of Western Union’s business comes from international markets, which are the main focus of planned expansion. Key regions include the Middle East, Asia, Africa, and Europe — the latter showing particularly strong growth over recent quarters.
In 2023, Western Union participated in testing a retail central bank digital currency (rCBDC) in money transfers to the Philippines.
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