Western Union has decided that if you can’t beat them, join them, as reports indicate the 175-year-old money transfer company is adopting stablecoins.
Stablecoin-fiat conversions remain a hot topic, with the former’s edge bordering on speed and liquidity.
Western Union Responds to Stablecoin Surge with Digital Wallet Integration Plans
Western Union CEO Devin McGranahan appeared during a Monday interview with Bloomberg’s The Close. He said the firm is planning to integrate stablecoins into its global payment systems.
McGranahan also revealed the company’s plans to explore collaborations so that customers can ultimately buy and sell stablecoins through its platform.
“Stablecoin is just one more opportunity to innovate…We are also exploring other partnerships with people who want on ramps and off ramps in different parts of the world and how we could enable Western Union’s funds in and funds out to enable people to purchase and sell stablecoins,” McGranahan said in the interview.
They are reportedly already implementing new settlement processes across South America and Africa. According to McGranahan, their goal is to facilitate faster money transfers and local currency conversions.
The Western Union executive also highlighted three key opportunities for the company, citing fast cross-border money movement, converting stablecoins to fiat currencies, and providing customers with a stable store of value.
“What we see is stablecoin really as an opportunity, not as a threat,” he added.
The shift in sentiment comes as stablecoins progressively pressure legacy remittance and cross-border payment companies.
Head of Digital Assets Research at VanEck, Matthew Sigel, revealed in a January post on X (Twitter) that downloads of remittance giant apps dropped significantly. He indicated Western Union with a 22% decline and MoneyGram seeing a 27% reduction.
Past quarter reports accentuate the outlook, showing declining revenues amid growing competition.
“The Company’s first-quarter revenue of $984 million decreased 6% on a reported basis,” read an excerpt in the Q1 2025 report.
It appears that Western Union has been working on measures to salvage its business.
Stablecoins Reshape Remittances as Western Union Joins the Race
The competitive edge for these dollar-denominated cryptos is speed, cost, and accessibility. BVNK co-founder and managing director Chris Harmse recently attested to this outlook in a LinkedIn post.
In his opinion, stablecoins have long-term cost advantages attained through rising liquidity, tighter spreads, and smarter routing.
With adoption growing, legacy players looking to survive must adapt, lest they lose ground. A small number of providers, including Western Union and MoneyGram, used to dominate global remittances in the past.
However, new entrants like Wise and Remitly disrupted the space, integrating digital-first alternatives.
The ground is shifting further now, with stablecoin-based services challenging new entrants and initial players like Western Union alike.
“Wise wins on cost because of deep corridor liquidity. Remitly wins on reach, they’re everywhere cards and wallets can’t go. Cash, rural, mobile wallets. They’ve built for the edge. Stablecoins bring something neither covers: logic inside the money,” one user commented.
Notably, MoneyGram beat Western Union to this strategy, adopting stablecoin remittances. Specifically, it launched MoneyGram Wallet in 2024, allowing users to send remittances in USDC stablecoin, with cash pickup available from agents across 180 countries.
Liz Bazurto, MetaMask’s ecosystem engagement manager, saw this wave coming, noting that traditional remittance giants might embrace stablecoin payments for their operations.
“I can see a path for WU and MoneyGram to enable Stables. MoneyGram has enabled Stellar (USDC) for on and offramps,” she wrote in a post.
Data on DefiLlama shows the total stablecoin market cap is at an all-time high of $262.301 billion.
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