Western Union is preparing to adopt stablecoins, or fiat-backed cryptocurrencies, for its cross-border services, aiming to modernize global money transfers in the wake of the new US stablecoin regulations.
In an interview with Bloomberg, CEO Devin McGranahan talked about how stablecoins can help many users, especially in countries with weak currencies. He further stressed that Western Union sees stablecoin as an opportunity to grow Western Union, not a threat.
“Last I checked, you couldn’t spend stablecoin if you wanted to buy a Coca-Cola, so converting stablecoins into fiat currencies, particularly in harder-to-convert currencies, is an opportunity for us,” McGranahan said, adding:
“For many of our customers around the world, a stablecoin presents a store of value that’s tough to achieve in their country.” He concluded, “We see stablecoin really as an opportunity, not as a threat.”
The company is exploring partnerships with major crypto firms to support stablecoin use. It is also considering building a digital wallet and offering on-ramp and off-ramp services. These services would help users convert between cash and stablecoins.
McGranahan pointed to three key benefits of stablecoins: faster cross-border transfers, easier conversion between fiat and digital currencies, and keeping value in high-inflation regions.
GENIUS Act Pushes Stablecoin Sector Forward
Western Union’s renewed interest follows the signing of the GENIUS Act into law. The GENIUS Act, short for Government Evaluation of New Innovations in the US, creates a national licensing system for stablecoin issuers. It defines stablecoin payments and sets regulatory oversight. The Federal Reserve oversees banks, while the Office of the Comptroller of the Currency supervises non-bank issuers.
The law requires one-to-one reserve backing and bans algorithmic stablecoins without full collateral. It also enforces Anti-Money Laundering rules. Additionally, stablecoin holders receive senior creditor status if an issuer fails.
Dante Disparte, chief strategy officer at Circle, said the law prevents large tech and financial firms from dominating the market. Non-bank issuers must now operate as separate, fully regulated entities.