Headline: Western Union Embraces Stablecoins to Revolutionize Money Transfers Translation: Western Union Embraces Stablecoins to Revolutionize Money Transfers

Western Union has initiated a pilot program for transactions using stablecoins. This was announced during a conference call regarding their financial performance for the third quarter.

This initiative forms part of the company’s strategy to upgrade remittance services for over 150 million customers.

According to Western Union CEO Devin McGranahan, the project aims to reduce reliance on traditional correspondent banks, expedite transaction times, and enhance capital efficiency.

«We see an opportunity to move money more swiftly, transparently, and cost-effectively, without compromising compliance or customer trust,» McGranahan stated.

Previously, Western Union had steered clear of cryptocurrencies due to their volatility and regulatory ambiguities. The passage of the GENIUS Act has shifted the company’s stance.

Western Union believes that stablecoins will offer clients greater control over their finances, which is particularly beneficial for users in high-inflation countries looking to hold assets in U.S. dollars.

The company reported that digital transactions have surged, now making up 55% of total transfers. Revenue from its digital brand has increased for the eighth consecutive quarter, rising by 6%.

A key focus has been the expansion of digital wallets. The service has been launched in seven countries, including the U.S. and Brazil, with user numbers exceeding 500,000. In Argentina, 15% of payments are processed through these wallets.

Western Union is also exploring integration with cryptocurrency firms for the exchange of fiat and virtual assets.

In the consumer segment, revenue grew by 49%. The main driver has been travel money services, which could reach $150 million by 2026.

In June, the crypto division of the French financial conglomerate Societe Generale, SG-FORGE, announced the launch of its stablecoin, USD CoinVertible.

In September, major European banks formed a consortium to issue a euro-pegged stablecoin in compliance with MiCA regulations. Participants in the project include ING, Banca Sella, KBC, Danske Bank, DekaBank, UniCredit, SEB, CaixaBank, and Raiffeisen Bank International.

To remind, in October, the 175-year-old French bank ODDO BHF announced the launch of the EUROD stablecoin pegged to the euro, built on the Polygon network.

Later, Early Warning Services, which operates the digital payment network Zelle, initiated a project to implement stablecoins for international transfers.