Key Takeaways
- Stablecoin Pilot: Western Union has begun testing stablecoin-based settlements to reduce costs and accelerate cross-border transfers.
- Regulatory Alignment: The initiative follows the GENIUS Act and focuses on secure, compliant integration of digital assets.
- Digital Expansion: Digital transactions now represent 55% of Western Union’s total volume, with 40% of global principal moved online.
- Platform Growth: Over 500,000 digital wallets have been onboarded, supported by a new global point-of-sale system deployed in under a year.
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Western Union, the global money transfer giant, said on Thursday it has begun testing stablecoin-enabled settlement solutions in its treasury operations, marking a cautious but concrete step into digital assets as part of its broader payments modernization push.
The pilots are designed to modernize cross-border settlements and improve capital efficiency while maintaining strict compliance and customer protection standards, the company said during its third-quarter earnings call, where executives also outlined the firm’s accelerating digital transformation and 2025 outlook.
We are actively testing stablecoin-enabled solutions in our treasury operations,” Chief Executive Devin McGranahan said during the call. “These pilots are focused on leveraging on-chain settlement rails to reduce dependency on legacy correspondent banking systems, shorten settlement windows and improve capital efficiency.
The company said the move follows the passage of the GENIUS Act, which has opened “potentially interesting opportunities” to integrate digital assets into mainstream payment infrastructure.
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,” McGranahan said.
Western Union is also testing the ability of its global payments network to function as an on- and off-ramp between fiat and digital currencies, allowing customers to move and hold U.S. dollar–denominated stablecoins in markets affected by inflation or currency volatility.
This is not about speculation. It is about giving our customers more choice and control in how they manage and move their money,” McGranahan said. “In many parts of the world, being able to hold a U.S. dollar–denominated asset has real value as inflation and currency devaluation can rapidly erode an individual’s purchasing power.
The company said it is expanding partnerships with digital-native firms seeking to use its infrastructure to bridge fiat and crypto ecosystems, particularly in markets with limited access to traditional banking.
Western Union says 55% of transactions now digital, 500,000 wallets onboarded
The stablecoin pilot fits into Western Union’s broader push to become a more digital-centric financial services provider, with digital transfers now accounting for 55% of total transactions and the company’s branded digital business handling over 40% of the principal moved worldwide.
Additionally, the firm’s digital wallet network, now live in seven countries including the U.S. and Brazil, has onboarded more than 500,000 customers and continues to expand. Western Union expects regulatory approval in Mexico before year-end and plans to launch a wallet in Australia in early 2026.
We envision our future as a broad-based two-sided payment network with digital wallet options on both sides in all of our major markets,” McGranahan said. “We also anticipate being able to facilitate both traditional and digital asset transfers for our customers and potentially others as well.
McGranahan added that Western Union’s digital shift is expanding beyond channels into a broader platform for innovation, citing the rollout of a new point-of-sale system that connects the company’s global retail network to its account and wallet payout infrastructure:
Executing the rollout of a new point-of-sale system in under 12 months is something we would not have been able to do just a few years ago. It is a true testament to the progress we are making on the technology front.
A Decade of Digital Experiments: Western Union’s Journey to Stablecoins
Western Union’s exploration of blockchain technology and digital assets spans nearly a decade, moving from early Blockchain tests to its recent stablecoin settlement pilots.
In 2015–2018, the company conducted pilot trials with Ripple Labs’ xRapid solution, which used the XRP token for cross-border payments, but later concluded the technology was still too costly and did not deliver meaningful savings.
By 2022–2023, Western Union had filed trademark applications covering crypto wallets, exchange and brokerage services, and digital token transactions, signaling a continued exploration of digital-asset business models.
In 2024–2025, the company confirmed it was considering the issuance of a stablecoin for select international markets, aligning the plan with its broader push toward regulated, fiat-backed tokens.
This progression set the stage for Western Union’s October 2025 announcement of a treasury pilot using stablecoin-enabled settlements, marking its most concrete step yet into digital assets within its global payments business.
Read More: Wyoming Rolls Out First U.S. State-Backed Stablecoin (FRNT) Across 7 Blockchains
