Remittance giant Western Union is exploring the launch of its own dollar-backed stablecoin, a strategic move to defend its core business against a growing field of cryptocurrency competitors. CEO Devin McGranahan confirmed the company is evaluating the token as a way to modernize its international money transfer services and potentially reduce its reliance on the traditional correspondent banking system.

The initiative signals a significant shift for the 175-year-old company as it adapts to new financial technology. Beyond creating its own asset, Western Union is also considering partnerships with major crypto industry players to integrate existing stablecoins. This exploration includes developing on-ramp and off-ramp services and a digital wallet, positioning the firm to engage more deeply with the digital asset ecosystem.

This development underscores a broader industry trend where established financial institutions are no longer dismissing but actively engaging with blockchain technology. By considering its own stablecoin, Western Union is validating the technology's potential to lower costs and increase settlement speed in the multi-trillion dollar global remittance market.