The company is also evaluating the development of a consumer-facing crypto wallet, signaling broader ambitions to integrate blockchain-based infrastructure into its global money transfer operations.
The remittance provider’s controlled rollout reflects shifting priorities as traditional financial intermediaries face mounting pressure from stablecoin-native solutions offering faster, cheaper transfers. Western Union sees the crypto rails not as a competitive threat but as a mechanism to improve foreign exchange conversion, settlement times, and asset custody in difficult-to-reach markets, according to McGranahan.
McGranahan identified three use cases for stablecoins in Western Union’s roadmap: real-time settlement with local partners, improved FX pricing in low-liquidity corridors, and optional customer custody for cross-border transfers. While details remain sparse, the firm’s emphasis on pilot-scale testing rather than wholesale conversion indicates a measured approach.
Western Union’s strategy also aligns with geopolitical currents. The Trump administration’s proposal to impose a remittance tax on U.S. outbound transfers, aimed at reducing cross-border capital flight, could inadvertently boost stablecoin adoption by pushing consumers toward cheaper, tax-neutral digital alternatives. Critics argue that such policy shifts will amplify demand for decentralized tools rather than curb them.
While the firm has not confirmed timelines for a public rollout, McGranahan hinted at corridor-specific metrics as key indicators of success. These include FX spread reduction, time-to-cash statistics, and the per-transaction economics relative to legacy settlement via the WUNet infrastructure. Any potential expansion of the program or wallet launch may be detailed in Western Union’s next earnings call, scheduled for October 2025.
The pilots reflect a broader industry transition, as payment giants previously hesitant to embrace blockchain now begin to test on-chain tools in live environments. Whether Western Union will seek a banking charter to issue its own stablecoin or instead rely on existing issuers remains unresolved.
However, Western Union may be more comparable to Tether than US-based stablecoins. Both generate most of their volume outside the United States, targeting people in emerging-market corridors who turn to dollar-linked transfers because local banking rails or physical USD are hard to access.
In fact, Western Union’s latest 10-K shows that about 65 % of its 2023 revenue ($2.85 billion of US $4.36 billion) was earned abroad, while market-tracker data indicates that U.S. exchanges see only ~$3 billion of the more than US $30 billion in daily USDT trades, meaning roughly 90 % of Tether volume is executed on offshore venues like Binance, OKX and Bybit.
