Stablecoin proponents long argued the fiat-pegged crypto assets could sound the death knell for payments giants that charge eye-watering fees to transfer money on users’ behalf. Instead, those companies are embracing the technology. Over the past week, Zelle and Western Union have announced plans to integrate stablecoins in their operations. “This is not about speculation,” Western Union CEO Devin McGranahan said on an investor call last week. “It is about giving our customers more choice and control in how they manage and move their money.”McGranahan cited the Genius Act as one impetus for the company’s recent crypto push. The first major crypto bill signed into law in the US, the Genius Act allows banks and other companies to issue stablecoins, provided they meet certain requirements.That includes backing the stablecoins with highly liquid assets such as US Treasuries, providing monthly disclosure of their reserves, and retaining the ability to freeze tokens at the request of law enforcement.Stablecoin market capitalisation has more than doubled over the past two years. But its rise accelerated with the passage of the Genius Act: the circulating supply of stablecoins has increased about 20% in the three months since the bill was signed into law. CHART: https://defillama.com/stablecoins“Historically Western Union has taken a cautious stance toward crypto, driven by concerns around volatility, regulatory uncertainty and customer protection,” McGranahan told investors.“However, with the passage of the Genius Act, we’re seeing potentially interesting opportunities to integrate digital assets into our business in ways that enhance efficiency, reduce friction, and improve customer experience.” Remittances Western Union allows customers to transfer money across borders. The service is especially popular with immigrants who use it to send remittances to family members back home. But its fees can be enormous — outgoing, international transfers cost between $35 and $50. Incoming transfers can be as high as $16. Moreover, those transfers can take as many as five business days to settle. Crypto advocates have long argued that stablecoins — instantaneous, borderless, and nearly free to send and receive — could challenge that business model. Stablecoin firm BVNK estimated that stablecoins could grow to 20% of the cross-border payments market within the next 10 years, up from about 3% today. McGranahan said his company could become an on- and off-ramp for crypto-fiat conversion, especially in regions where crypto is growing despite limited access to traditional financial services. Western Union is also “actively testing stablecoin-enabled solutions in our treasury operations.”“These pilots are focused on leveraging onchain settlement rails to reduce dependency on legacy correspondent banking systems, shorten settlement windows, and improve capital efficiency,” he told investors. “We see significant opportunities for us to be able to move money faster, with greater transparency and at lower cost without compromising compliance or customer trust.” Zelle Zelle parent company Early Warning Services is owned by major US banks. While Zelle allows users to transfer money at no cost, it is only available to people with a US bank account. On October 24, the company announced it would use stablecoins to facilitate cross-border transactions. And its CEO suggested it too was motivated by the passage of the Genius Act. “Our goal is to bring the trust, speed and convenience of Zelle to consumers’ international money movement needs,” Early Warning Services CEO Cameron Fowler said in a statement. “With improved regulatory clarity in the U.S., we can focus on what we do best: driving innovation to market.”The company is considering issuing its own stablecoin, according to a report from Semafor. Aleks Gilbert is DL News’ New York-based DeFi correspondent. You can reach him at [email protected].Stablecoin proponents long argued the fiat-pegged crypto assets could sound the death knell for payments giants that charge eye-watering fees to transfer money on users’ behalf. Instead, those companies are embracing the technology. Over the past week, Zelle and Western Union have announced plans to integrate stablecoins in their operations. “This is not about speculation,” Western Union CEO Devin McGranahan said on an investor call last week. “It is about giving our customers more choice and control in how they manage and move their money.”McGranahan cited the Genius Act as one impetus for the company’s recent crypto push. The first major crypto bill signed into law in the US, the Genius Act allows banks and other companies to issue stablecoins, provided they meet certain requirements.That includes backing the stablecoins with highly liquid assets such as US Treasuries, providing monthly disclosure of their reserves, and retaining the ability to freeze tokens at the request of law enforcement.Stablecoin market capitalisation has more than doubled over the past two years. But its rise accelerated with the passage of the Genius Act: the circulating supply of stablecoins has increased about 20% in the three months since the bill was signed into law. CHART: https://defillama.com/stablecoins“Historically Western Union has taken a cautious stance toward crypto, driven by concerns around volatility, regulatory uncertainty and customer protection,” McGranahan told investors.“However, with the passage of the Genius Act, we’re seeing potentially interesting opportunities to integrate digital assets into our business in ways that enhance efficiency, reduce friction, and improve customer experience.” Remittances Western Union allows customers to transfer money across borders. The service is especially popular with immigrants who use it to send remittances to family members back home. But its fees can be enormous — outgoing, international transfers cost between $35 and $50. Incoming transfers can be as high as $16. Moreover, those transfers can take as many as five business days to settle. Crypto advocates have long argued that stablecoins — instantaneous, borderless, and nearly free to send and receive — could challenge that business model. Stablecoin firm BVNK estimated that stablecoins could grow to 20% of the cross-border payments market within the next 10 years, up from about 3% today. McGranahan said his company could become an on- and off-ramp for crypto-fiat conversion, especially in regions where crypto is growing despite limited access to traditional financial services. Western Union is also “actively testing stablecoin-enabled solutions in our treasury operations.”“These pilots are focused on leveraging onchain settlement rails to reduce dependency on legacy correspondent banking systems, shorten settlement windows, and improve capital efficiency,” he told investors. “We see significant opportunities for us to be able to move money faster, with greater transparency and at lower cost without compromising compliance or customer trust.” Zelle Zelle parent company Early Warning Services is owned by major US banks. While Zelle allows users to transfer money at no cost, it is only available to people with a US bank account. On October 24, the company announced it would use stablecoins to facilitate cross-border transactions. And its CEO suggested it too was motivated by the passage of the Genius Act. “Our goal is to bring the trust, speed and convenience of Zelle to consumers’ international money movement needs,” Early Warning Services CEO Cameron Fowler said in a statement. “With improved regulatory clarity in the U.S., we can focus on what we do best: driving innovation to market.”The company is considering issuing its own stablecoin, according to a report from Semafor. Aleks Gilbert is DL News’ New York-based DeFi correspondent. You can reach him at [email protected].