Western Union CEO Devin McGranahan suggests that stablecoins are not a threat, but rather a catalyst that accelerates cross-border settlements.
McGranahan shared this view during a recent Bloomberg interview, where he provided insights into the company’s recent operations.
Stablecoin Is an Opportunity, Not a Threat
According to him, the financial services corporation does not consider stablecoins a threat to its business, but rather an opportunity.
Given this, he disclosed that the company is exploring how to integrate stablecoin products into its digital wallet for customers worldwide. This initiative will allow Western Union’s customers to hold, send, and receive stablecoins, as well as fiat currencies.
Instead of building its entire stablecoin product in-house, McGranahan said Western Union will partner with other infrastructure companies for the initiative.
Although he did not mention potential partners, he hinted that Bloomberg has already interviewed some of the companies it intends to partner with on the stablecoin initiative.
Growing Interest in Stablecoins Among Banks and Financial Institutions
Notably, McGranahan made the disclosure just days after President Donald Trump signed the stablecoin legislation, the GENIUS Act, into law. The law provides a clear framework for U.S. dollar-pegged stablecoins.
Meanwhile, Western Union is not the only financial institution exploring stablecoins as a tool for digital payments. As previously reported, top U.S. banks, including Bank of America, Citibank, JPMorgan Chase, and Wells Fargo, are pursuing a joint stablecoin venture. Under the venture, the banks intend to issue their stablecoin soon.
It is no surprise that banks are exploring stablecoins for digital payments. Stablecoins are typically known for maintaining a stable price and facilitating low-cost, fast payments. Promoters emphasized that these features are crucial for enhancing the traditional payment system, which many consider outdated.
Besides banks, other major financial institutions have also shown interest in stablecoins, with some rolling out their own. Last year, Ripple launched RLUSD, a stablecoin that has skyrocketed to a market capitalization of $532 million in barely seven months after its debut.
The stablecoin market has gained traction over the years, boasting a valuation of $267.21 billion. Tether (USDT) remains the leader of this market, with its valuation currently standing at $161.71 billion.
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