Western Union CEO Unveils Stablecoin Plans for Treasury, Customer Payments

Western Union (NYSE: WU) is actively exploring stablecoin integration across its global payments network, marking a significant strategic shift for the 173-year-old remittance company as new U.S. regulations provide clearer frameworks for digital assets.

CEO Devin McGranahan announced during the company's third quarter earnings call that Western Union is testing stablecoin-enabled solutions in treasury operations, focusing on leveraging blockchain settlement rails to reduce reliance on legacy correspondent banking systems while shortening settlement windows and improving capital efficiency.

"With the passage of the GENIUS Act, we are now seeing potentially interesting opportunities to integrate digital assets into our business in ways that enhance efficiency, reduce friction and improve customer experience," McGranahan said.

The company is exploring how its global payments network can serve as an on-ramp and off-ramp between fiat and digital currencies, with McGranahan noting "strong interest from potential digital native partners using our infrastructure to bridge these worlds, particularly in regions where access to traditional banking is limited, but crypto adoption is growing."

Western Union plans to expand partnerships and capabilities allowing customers to move and hold stablecoin digital assets, though McGranahan emphasized the focus is utility rather than speculation. "This is not about speculation. It is about giving our customers more choice and control in how they manage and move their money," he said.

The CEO highlighted that in many regions, holding U.S. dollar-denominated assets provides real value as inflation and currency devaluation can rapidly erode purchasing power. The stablecoin initiatives complement Western Union's broader digital transformation, including investments in digital channels, payout-to-account capabilities, and digital wallet platforms.

"We see significant opportunities for us to be able to move money faster with greater transparency and at lower cost without compromising compliance or customer trust," McGranahan stated.

The strategic pivot represents a reversal from Western Union's historically cautious stance toward cryptocurrency, which was driven by concerns around volatility, regulatory uncertainty, and customer protection. McGranahan acknowledged the company's past reluctance but characterized the current environment as offering clearer pathways for responsible integration.

Western Union has been modernizing its technology stack and rolling out digital wallets across seven countries, including recent launches in Brazil and the United States. The company said it has onboarded over 500,000 wallet customers, with Argentina approaching 15% of inflows captured in wallets and Brazil nearing 5% less than a year after launch.

The digital wallet infrastructure and modernized payments network provide foundational capabilities for accelerating digital asset strategy, according to McGranahan. He noted that over 55% of all Western Union money transactions now involve digital elements, either through digital initiation or digital payout.

The company reported third quarter adjusted revenue of $1.03 billion, down 1% excluding impacts from Iraq, with branded digital business growing 6% in revenue and 12% in transactions. Western Union's consumer services segment, which now accounts for roughly 15% of total revenue, grew 49% in the quarter.

McGranahan said Western Union will share additional details about its digital asset plans at the company's upcoming Investor Day on November 6.