During a Monday interview with Bloomberg, Western Union CEO Devin McGranahan said that the company views stablecoins as an opportunity. He also said it is exploring partnerships with major crypto industry players to offer stablecoin on-ramp and off-ramp services, as well as a digital wallet.
“We see stablecoin really as an opportunity, not as a threat. […] We’re 175 years old, and we’ve been innovative across [those] 175 years. And stablecoin is just yet one more opportunity to innovate,” McGranahan said.
McGranahan highlighted three areas where the company may leverage stablecoins: faster cross-border transfers, conversion between fiat and stablecoins and serving as a store of value in unstable economies.
Western Union is not new to crypto
Western Union is reportedly testing new settlement processes involving stablecoins in Africa and South America. However, this is not the firm’s first foray into crypto. Western Union filed for three trademarks for crypto-related products as far back as late October 2022. The firm also partnered with Ripple to settle payments of remittances in 2015.
Still, Western Union’s partnership with Ripple remains in the test phase. The company expressed interest in crypto, but announced that it would not be adding crypto transfers to its services in 2018.
Simon Taylor, Head of Strategy at Sardine, commented: „Western Union is famous for its high fees, but operates at just a 3.2% margin. Stablecoins have much lower fees and are able to generate much more revenue because Treasuries back them. The GENIUS Act (The Government Evaluation of New Innovations in the US Act) just legitimized the whole space. Every bank can now custody stablecoins. Western Union has 2 choices: lean into stablecoins, use them to strip out cost & drive new revenue, or become the next Kodak (a cautionary tale). The clock is ticking.”
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