Western Union, MoneyGram Launch Their Own Stablecoins to Defend Remittance Market

Western Union and MoneyGram, the two biggest players in the global remittance market, are rolling out stablecoin-based services as they fend off competition from cryptocurrency technology.

Bloomberg reported on Oct. 19 that Western Union launched its dollar-pegged stablecoin, USDPT, in May and introduced digital wallet and card services in partnership with fintech company Rain. MoneyGram also launched its own stablecoin, MGUSD, and a card in Colombia before expanding to El Salvador. It plans to extend the service across Latin America.

The two companies are moving quickly on stablecoins as their market positions come under pressure. According to app analytics firm Sensor Tower, Western Union's monthly active app users fell 10% in September from a year earlier, while MoneyGram's declined 9%. Rival Wise, by contrast, posted a 9% increase over the same period. Western Union shares have plunged 70% over the past five years, nearing a record low.

Stablecoin-based remittances differ from traditional services in speed and cost. Consulting firm Alvarez & Marsal said stablecoin payment volume reached $401 billion from January through August this year, up 42% from a year earlier. Cross-border stablecoin transaction volume also jumped 64% in 2025 to $135 billion.

MoneyGram Chief Executive Officer Anthony Soohoo said customers are not seeking stablecoins themselves as much as a way to hold funds in a stable currency such as the dollar. Transactions within the company's own network are faster, and direct control over the cost structure allows it to offer lower fees and a better user experience.

Malcolm Clarke, Western Union's head of digital assets, said stablecoins would be most useful in regions with limited financial access or volatile exchange rates.

Still, it remains unclear whether issuing their own stablecoins will prove effective. Kumanan Ramanathan, co-head of Alvarez & Marsal, said global remittance fees have held at about 6% for a decade, but that margin is now under pressure. That helps explain why large remittance firms are trying to take direct control of infrastructure. Paul Bances, an adviser at payments strategy consultancy TGB Advisory Group, said that if the number of stablecoins grows into the hundreds without interoperability, the industry will simply recreate the same problems that have long plagued the traditional remittance market.