Western Union is exploring the possibility of launching its own dollar-backed stablecoin in response to growing competition in the international transfer market.
Reasons for the Stablecoin
CEO Devin McGranahan stated in a recent interview that the company "is exploring the opportunity for us to issue a stablecoin, particularly in non-US markets." He noted that this asset could function "almost like a savings account in US dollars" for customers in countries where local regulations allow.
Competition in the Transfer Market
In recent weeks, the US government has passed laws aimed at integrating stablecoins into the financial system. This shift matters for remittance companies, as new projects promise to make sending money faster and cheaper. For instance, PayPal has already launched its dollar-backed stablecoin, while Circle, the creator of USDC, is expanding its international presence.
Western Union's Stock Situation
Meanwhile, Western Union's market value has been under pressure, with shares falling about 27% since January. Analysts at Capstone noted that industry changes might make the company attractive to large crypto holdings like Circle. McGranahan stated they would consider offers if they align with the company's valuation.
Should Western Union decide to launch a stablecoin, it could represent a significant step in strengthening the company's position in the international transfer market and enhance interest in digital currencies.
