Stablecoins will shake up the $900 billion remittance market—setting up a fight between crypto firms and legacy brands like Western Union

Core Insights - The global remittance market sees approximately $900 billion sent annually, with stablecoins emerging as a cost-effective alternative to traditional transfer systems, which can charge fees as high as 6% [1][3] Group 1: Stablecoin Adoption - Stablecoins, previously utilized mainly by experienced crypto traders, are now being adopted by millions of ordinary users through digital wallets, raising questions about which companies will benefit most from this trend [2] - The stablecoin industry presents opportunities for both legacy remittance companies like Western Union and newer fintech entrants, each facing unique advantages and challenges [2] Group 2: Remittance System Challenges - The remittance system is characterized by high fees, with the World Bank reporting an average cost of over 6% for sending money internationally, which disproportionately affects low-income immigrants [3] - High remittance costs impact the financial well-being of vulnerable populations, as intermediaries take significant portions of the funds sent home [4] Group 3: Regulatory Developments - The Genius Act, signed by President Trump, established a regulatory framework for stablecoins, prompting major remittance players like Western Union and PayPal to develop their own stablecoin offerings [5] Group 4: Competitive Landscape - Traditional remittance companies like Western Union have the advantage of an established global customer base and decades of regulatory compliance, positioning them favorably for the adoption of stablecoins [6]