Western Union has joined the stablecoin race following the end of the historic “Crypto Week” and the recent passage of key legislation. The company is reportedly set to tap into digital assets for faster cross-border payments.
On Monday, Western Union CEO Devin McGranahan said that the company is exploring a path to integrate stablecoins into its services worldwide as interest in the sector continues to grow.
According to the CEO, integrating these assets offers a path for faster cross-border payments. It also provides an opportunity for conversion between fiat currencies and stablecoins, particularly in countries where local currency conversions are harder. Additionally, the company could offer stablecoins as a store of value to their customer worldwide.
McGranahan detailed that the company is already innovating new settlement processes to “move money quicker and to more easily convert into local currency” in different places, including South America and Africa.
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.
The legislation is set to establish a clear regulatory framework for stablecoins, allowing tokens like USDT and USDC to fall under the Federal Reserve rules and enable the sector’s growth in the US.
Standard Chartered Bank has estimated that the stablecoin market, valued at $268 billion, could expand to $2 trillion by 2028. Similarly, White House Crypto Czar David Sacks forecasted that the sector could reach a $3 trillion valuation in the coming years once legislation was passed.
In January, Moynihan affirmed that the US banking industry was ready to embrace digital asset payments and banks would “come hard” to crypto if the US regulatory landscape allowed it.
