More money exchanges plan to speed up your remittances soon: Here's how

Dubai: More money transfer giants are racing to modernize cross-border payments, and the latest moves suggest your remittances could arrive in minutes instead of days.

From stablecoins to blockchain-powered rails, new technology is reshaping how funds move across the globe—faster, cheaper, and with fewer middlemen.

Western Union, the 175-year-old global remittance giant, is weighing the launch of its own dollar-backed stablecoin—a move that could transform the way money is sent and received across borders.

“We’re investigating the potential to issue a stablecoin, especially in markets outside the U.S.,” said CEO Devin McGranahan, in a Bloomberg interview.

He described the coin as “almost like a savings account” for customers in countries where regulations allow it. The stablecoin would enable users to hold funds in a stable digital dollar alternative, reducing exposure to local currency inflation.

The initiative comes as a growing wave of stablecoin projects threatens to disrupt the traditional, slower remittance channels that have long defined the industry.

Stablecoins are a type of cryptocurrency pegged to stable assets like the US dollar or euro. This peg dramatically reduces the price volatility typically associated with crypto assets, making them suitable for everyday transactions.

By running on blockchain rails, stablecoins can settle transactions in minutes, bypassing the costly and time-consuming correspondent banking networks that often delay cross-border payments for days.

Western Union’s current model involves moving funds through a network of banks and intermediaries.

While reliable, it can take two to three days for money to arrive, depending on the destination and banking relationships. A stablecoin would allow the company to settle payments peer-to-peer on-chain, reducing intermediaries, lowering fees, and delivering funds almost instantly.

For senders, that means more of their money reaches family members abroad instead of being eaten up by transfer costs. For Western Union, it’s a chance to modernize operations without replacing its global infrastructure entirely—simply layering blockchain-based settlement onto its existing network.

Western Union’s exploration of a stablecoin comes as the UAE cements its position as a hub for regulated digital asset innovation. Earlier this year, Abu Dhabi entities IHC, ADQ, and First Abu Dhabi Bank announced a fully regulated dirham-backed stablecoin, approved by the UAE Central Bank, aimed at easing domestic and cross-border payments.

With large remittance flows from the UAE to countries in Asia and Africa, a stablecoin framework could reduce delays and improve efficiency for millions of workers sending money home. If Western Union’s stablecoin integrates with markets like the UAE—where regulation is already in place—it could accelerate adoption in high-volume corridors.

Western Union is not alone in this shift. PayPal has launched its own dollar-backed stablecoin and integrated it into its Xoom remittance platform. MoneyGram accepts payments in USDC and is exploring stablecoin-powered back-office functions. Circle, the issuer of USDC, has expanded globally through partnerships with banks and fintechs.

This competition is putting pressure on traditional remittance providers. Western Union’s stock has fallen 21% this year amid speculation it could even become an acquisition target for a major crypto player. CEO Devin McGranahan said the company would consider offers “at the appropriate value,” but stressed the focus remains on evolving its own offerings.

Rather than building a coin from scratch, Western Union would likely partner with a leading crypto firm to issue the token. The company also sees a role as a bridge between the crypto and traditional financial worlds, offering on- and off-ramps for digital wallets.

“Until the world works entirely on stablecoin or cryptocurrency, most people still buy their groceries or pay rent in local currency—so we’re enabling our network to be agnostic,” McGranahan said.

If launched, Western Union’s stablecoin could make it the first major global remittance specialist to offer its own regulated digital currency, potentially reshaping the remittance industry and setting a new benchmark for speed, cost, and accessibility in global money transfers.