Western Union has become the latest financial giant to show interest in stubcoin as competition heats up in the global remittance market and clarity of regulations increases.
I’ll talk Bloomberg On Tuesday, CEO Devin McGranahan said the company will offer valuable products to customers in countries with weaker currency, seeing three opportunities for the use of Stablecoin, focusing on faster cross-border payments and better Fiat conversion options in more difficult markets.
“We see stubcoins as an opportunity, not as a threat,” he said.
McGranahan’s comments follow a surge in interest in the absurd and absurd all over the financial sector as clarity of regulations emerges.
Last week, President Donald Trump signature Geniuses act in law and establish a formal US framework for issuing and trading stables.
The move is expected to accelerate recruitment by banks, retailers and traditional financial players, many of whom have recently expressed interest in entering the space.
Western Union already runs pilots for new settlement processes in regions such as South America and Africa, working with infrastructure companies to improve foreign exchange conversion and settlement speeds.
The company is also looking for partnerships to act as crypto on-ramp and off-ramp in certain jurisdictions and is considering offering a Stablecoin wallet.
“It’s exciting to see industry giants like Western Union exploring stubcoin. I know why.” Decryption.
“Stablecoins offer a better, cheaper, more flexible alternative to traditional banking systems,” he said.
Larger cost
According to Wang, Owlting, which partners with Western Union competitor MoneyGram at Stablecoin Projects, has seen “double-digit monthly enquiries” from companies interested in using Stablecoins.
He pointed out that part of their appeal was because the average global remittance fee is still at 6.6%.
Meanwhile, Stablecoins can significantly reduce costs well below the UN 3% target by reducing intermediaries and FX markup. Settlements usually operate 24/7, unlike legacy systems.
“Levelling clarity is accelerating this movement, like American genius acts and European mica,” Wang added. “We hope that by the second half of 2025, major players will be closing their explorations and pilots. We hope that in 2026, a widespread adoption will be a hit as compliance frameworks and technology integrations such as APIs and Treasury workflows will mature.”
Despite the momentum, some remain skeptical.
In the United States, formerly Senator Elizabeth Warren I warned By allowing genius acts to pass, tech billionaires can open the door to issuing private currency.
“If Congress didn’t fix it, billionaires like Elon Musk, Jeff Bezos and Mark Zuckerberg could have launched Stablecoins that track purchases, misuse data and squeeze out their competitors,” she warned. “Then when they inevitably explode, they will plead for relief.”
Her comments followed not only the announcement from the bank, but also the exploration of Stablecoins, but also retail giants like Walmart and Amazon. Even further afield, the Chinese giants JD.com and Alipay are Pursuit Regulations approval for the provision of stubcoin in international markets.
While some corridors still pose challenges in terms of infrastructure and conversion fees, Wang also notes the increased intake between platforms of small and medium-sized businesses and migrant workers, particularly due to payments to Africa where transparency and speed exceed traditional banks.
“I think the future winner will be someone who will eliminate as many intermediaries as possible (as possible) and provide the perfect solution within the payments ecosystem,” he said.