Global remittance giant Western Union is preparing to launch stablecoin-based payment settlement systems across Africa and South America, signaling a bold step into the digital asset economy.
In a significant move that could reshape the future of cross-border remittances in emerging markets, Western Union CEO Devin McGranahan has revealed the company’s ongoing development of stablecoin-powered infrastructure in Africa and South America. The announcement underscores a growing trend among traditional financial institutions embracing blockchain technology to enhance speed, efficiency, and access in financial services.
Stablecoins: An Opportunity, Not a Threat
Speaking with Bloomberg, McGranahan emphasized that Western Union views stablecoins as an opportunity to innovate rather than a threat. The CEO disclosed that the company has been quietly collaborating with on-the-ground payment infrastructure providers in Africa and Latin America to develop blockchain-based financial products aimed at improving settlement times and access to fiat currency in regions plagued by volatile exchange rates and limited banking infrastructure.
“We are already innovating in several places in the world on moving money and settling, both in South America and Africa,” McGranahan said.
“We are innovating our settlement processes to move money quicker and to more easily convert into local currency…”
What Western Union Is Building
Although McGranahan stopped short of providing a launch date or complete technical breakdown, the vision is clear: Western Union is building a stablecoin settlement framework that includes:
- Stablecoin-to-fiat conversion tools, especially for “harder-to-convert” local currencies.
- Digital fund storage options in stablecoins, enabling users to preserve value amidst inflation.
- On-ramp and off-ramp systems to help customers seamlessly exchange between fiat and stablecoins.
This approach aligns with Western Union’s longstanding mission of connecting individuals across the globe financially, but now through faster, cheaper, and borderless digital rails.
Africa and Latin America: The Ideal Testbeds
Africa and South America are fertile ground for blockchain adoption. These regions are home to millions of unbanked individuals, frequent currency instability, and high remittance fees, making stablecoins an attractive alternative.
In Africa, where mobile money adoption is among the highest globally and crypto is increasingly used as a hedge against inflation, Western Union’s entry could accelerate stablecoin utility and acceptance at both retail and enterprise levels.
TradFi’s Growing Stablecoin Appetite
Western Union isn’t alone. The move comes amid a wave of traditional finance (TradFi) institutions embracing stablecoins and blockchain infrastructure:
- In May 2024, Mastercard partnered with Moonpay to support stablecoin payments through Mastercard-linked credit and debit cards.
- Around the same time, Stripe launched stablecoin financial accounts, enabling global businesses to accept stablecoins for goods and services.
- Visa, in collaboration with Yellow Card, expanded its stablecoin settlement solution into Africa, streamlining cross-border transactions using USDC on blockchain rails.
These developments reflect increasing confidence from regulated entities in blockchain-based assets, driven by improved global regulatory clarity.
Regulatory Clarity: Fueling Institutional Adoption
According to Yellow Card’s Chief of Staff, regulatory clarity is a key driver of institutional interest in stablecoins. In an earlier interview with Mariblock, she noted:
“Regulatory clarity has emerged across several jurisdictions, giving institutions the green light to innovate without fear of enforcement surprises… The passing of the GENIUS Act signals to the world that stablecoins are moving fast—this ensures transparency, capital reserves, and consumer protection, giving institutions the confidence to build on top of stablecoin rails.”
What This Means for Crypto in Africa
Western Union’s venture into stablecoin settlements could be a game-changer for Africa’s remittance and digital finance ecosystem. It offers:
- Lower transaction fees for cross-border payments.
- Faster settlements compared to legacy systems like SWIFT.
- Enhanced access to USD-backed digital assets in inflation-prone economies.
With the infrastructure reportedly under development, the continent could soon witness one of the world’s oldest remittance firms integrating stablecoins directly into everyday financial transactions.
As crypto adoption deepens in Africa, Western Union’s stablecoin settlement systems could serve as a bridge between legacy finance and decentralized digital assets. While the timeline remains uncertain, the intent is clear: stablecoins are no longer fringe, they’re fast becoming a pillar of the future financial system.
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