Marc Arjoon

Boccaccio

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Happy Wednesday. Equities stayed strong, while crypto cooled slightly after recent rallies ahead of key inflation data. Elsewhere, Western Union unveiled its stablecoin push and its new US Dollar Payment Token (USDPT) on Solana.



MegaETH’s public sale auction ends tomorrow, and we think it’s probably one of the best opportunities this year, if you are able to get any allocation above the minimum.



<h2 class="wp-block-heading">Indices</h2>



Global markets diverged sharply as traditional risk assets held firm while crypto sectors saw a broad selloff. The Nasdaq 100 (+0.8%) and S&amp;P 500 (+0.3%) extended their recent resilience, supported by strong tech earnings and cooling Treasury yields. Gold (-0.8%) and BTC (-1.0%) both slipped, signaling modest risk rotation rather than outright fear or a mild “risk-off” tilt within digital assets, even as equities stayed buoyant.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="830" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-150.png?w=1024&amp;h=1024" alt="" class="wp-image-109623" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-150.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-150.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-150.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-150.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-150.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-150.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-150.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-150.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-150.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Crypto sectors painted a sea of red. Gaming (-4.5%) led declines, followed by Meme (-3.3%), L2 (-3.2%), and L1 (-3.2%), a notable reversal in higher-beta categories that had outperformed earlier in the month. Ethereum and Solana ecosystems (both -2.7%) also lagged, as network activity slowed and profit-taking intensified post-recent rallies. The one bright spot was AI (+3.5%), which bucked the trend amid renewed enthusiasm for decentralized compute narratives and broader tech strength.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="859" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-151.png?w=1024&amp;h=1024" alt="" class="wp-image-109624" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-151.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-151.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-151.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-151.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-151.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-151.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-151.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-151.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-151.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The day’s weakness in crypto appears sentiment-driven, coinciding with macro caution ahead of upcoming US inflation data and continued ambiguity over ETF inflows. Onchain volumes have softened, suggesting traders are waiting for fresh catalysts before reengaging risk.



Volatility remains contained, a sign that the pullback may be more of a rotation than a liquidation. All eyes now turn to macro prints later this week (unemployment rate, wage growth, Q3 GDP growth, ISM and more) which could determine whether the next move in crypto is another correction or a renewed push higher.



<h2 class="wp-block-heading">Market Update</h2>



Western Union’s (WU) Q3 2025 financials outlined an explicit “Stablecoins in Remittances” initiative focused on four verticals: treasury optimization, crypto-fiat on- off- ramps, expanded banking reach and direct customer access. That’s corporate speak for “we’re building a stablecoin bridge.” After eight straight quarters of digital revenue growth and double-digit transaction expansion, the firm is now positioning itself as a compliant layer between regulated banking rails and permissionless stablecoin liquidity.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1405" height="595" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-149.png?w=1024&amp;h=1024" alt="" class="wp-image-109622" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-149.png?w=1405 1405w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-149.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-149.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-149.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-149.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-149.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-149.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-149.png?w=80 80w" sizes="auto, (max-width: 1405px) 100vw, 1405px" /><figcaption class="wp-element-caption">Source: <a href="https://s21.q4cdn.com/100551446/files/doc_financials/2025/q3/3Q25-Presentation-FINAL.pdf">Western Union</a></figcaption></figure>



The strategy aligns with what’s already happening onchain: USDT and USDC volumes through emerging market exchanges have doubled YTD, while USDC remittance corridors (like Philippines and Brazil) are seeing faster settlement speeds and lower costs than traditional wires. Western Union’s “digital-first” expansion into Latin America, via Argentina and Brazil wallets, makes stablecoin integration a natural next step. This news pushed the stock higher, and WU is up (+16.7%) since.&nbsp;



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="940" height="624" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-148.png" alt="" class="wp-image-109621" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-148.png?w=940 940w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-148.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-148.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-148.png?w=387 387w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-148.png?w=393 393w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-148.png?w=330 330w, https://blockworks-co.imgix.net/wp-content/uploads/2025/10/image-148.png?w=80 80w" sizes="auto, (max-width: 940px) 100vw, 940px" /></figure>



For Western Union, this is a welcome sign from investors after a torrid year. For crypto markets, this marks a pivotal macro signal. Stablecoin adoption is crossing from DeFi yield-chasing into regulated payments infrastructure. As Tether’s dominance rises (now ~60% of supply), expect compliance-focused issuers like Circle to lean heavily into B2B remittance partnerships, especially as global fintechs scramble to match Western Union’s move. Moreover, yesterday it announced its plan to launch US Dollar Payment Token (USDPT), its new stablecoin and an “innovative Digital Asset Network” designed to bridge the digital and fiat worlds (built on Solana and issued by Anchorage Digital Bank). Watch for Western Union’s 2025 Investor Day (Nov. 6), for any more moves that could set off a new wave of “TradFi stablecoin” trade setups.



<h2 class="wp-block-heading">MegaETH public sale</h2>



The MegaETH public sale concludes tomorrow after running for 72 hours as an English auction that began on Oct. 27 at 9 a.m. ET. Unlike traditional token sales, this English auction format allows the market to determine the fair price through competitive bidding. The system works by establishing a clearing price — the lowest price point where total bids can fill the entire 500 million token allocation. All successful bidders pay this same clearing price regardless of their individual bid amounts, meaning someone who bids at the maximum $0.0999 per token would still only pay the final clearing price if it settles lower. Bidders who fall below the clearing price receive full refunds, while those at or above it secure allocations. The auction format eliminates gas wars and first-come-first-served advantages, creating a more equitable distribution mechanism.



The sale offers 500 million MEGA tokens, representing 5% of the total 10 billion token supply, conducted entirely on Ethereum mainnet using USDT as the payment method. The auction operates within a price range from $0.0001 to $0.0999 per token, with the starting price set at $0.0001 representing a $1 million fully diluted valuation and the ceiling price of $0.0999 representing a $999 million FDV. Individual participants can bid between $2,650 minimum and $186,282 maximum, with a tick size of $0.0001 for bid increments. The structure includes a mandatory one-year lock-up period for US accredited investors who receive a 10% discount, while non-US participants can optionally choose the same lock-up terms for the discount benefit. Following the auction&#8217;s conclusion tomorrow, the allocation calculation period runs from Oct. 30 to Nov. 5, with withdrawals and refunds available from Nov. 5-19, and final allocation and reallocation occurring from Nov. 19-Nov. 21.



As expected, the MegaETH public sale has been tremendously successful so far, with a 14x oversubscription as of today. This number will likely only increase as we head into the final day, with the majority of deposits/bids coming in in the last few hours.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Wow, someone made a free money machine and attracted a lot of people who wanted free money. That’s crazy Hyperliquid <a href="https://t.co/s8X84N6Pjy">pic.twitter.com/s8X84N6Pjy</a>&mdash; Sisyphus (@0xSisyphus) <a href="https://twitter.com/0xSisyphus/status/1983458476023251408?ref_src=twsrc%5Etfw">October 29, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



After all, if someone makes a free money machine, the only logical action is to deposit as much as possible. Currently MegaETH trades on pre-markets (on Hyperliquid, woohoo!) at a 4.5 billion FDV valuation, giving depositors a 4.5x on any deposit they make. The main issue is that it’s likely that any depositor can at most hit a 4.5x on the minimum bid amount: $2,650 USD. The MegaETH team has given public information on what allows bidders to receive more allocation, mostly revolving around past wallet interactions, social media presence, as well as some of the new “social credit” platforms like Ethos.



Much like any scenario where there is a free money machine involved, we’ve seen a plethora of Sybil activity. If the minimum bid is $2,650 USD, and you have 450 Echo/Sonar accounts you can make a lot more money, with a higher chance of making money than if you are a good, astute cryptocurrency enjoyer with the right social and DeFi/onchain credentials.



We’ve discussed MegaETH on the podcast plenty of times, generally leaning towards bullishness for the chain. The team have a unique approach to ecosystem building (the MegaMafia is now in cohort 2, with the third on the way), and are focusing on unique applications — not Uniswap, Aave, Morpho or Compound forks (which seem to dominate the majority of other chains).&nbsp;



Kunal Goel, previously at Messari, now at LayerZero, <a href="https://x.com/kunalgoel/status/1983304334835077425">released a valuation model yesterday</a>, with his base case for MegaETH sitting at $14 billion USD. Although some of his assumptions are a bit brave (assuming blocks are always filled because of the existence of MEV/arbitrage bots), it does highlight that the MegaETH team has been thinking more about revenue and value accrual than other L2s have historically.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">MegaETH&#39;s scale is so impressive that any time you run the numbers, all intuitive projections get blown out. While the market is pricing it as yet another L2, my model finds the opportunity is actually much MUCH larger. I&#39;ve modeled out four scenarios: 🐂 BULLISH &#8211; MegaETH… <a href="https://t.co/uM4DtommkU">pic.twitter.com/uM4DtommkU</a>&mdash; Kunal G (@kunalgoel) <a href="https://twitter.com/kunalgoel/status/1983304334835077425?ref_src=twsrc%5Etfw">October 28, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



No matter your opinion on MegaETH’s valuation, we’ve had two key takeaways on our end these past few months:



A lot of significant returns now come from private public markets (Echo, Sonar etc.), predeposits etc. What was 2021’s whitelists and discord roles (and subsequent Sybilling, buying and selling of whitelists and discord roles) has now evolved into Sonar and Echo (and subsequent Sybilling, buying and selling of KYC’d Sonar and Echo accounts).



There are now chains which are explicit about their focus on revenue and those focused on another narrative (e.g. decentralization). Which offers better returns, still unknown (e.g. XRP vs. Hyperliquid or ETH vs. SOL).



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<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

0xResearch Newsletter

Stablecoins step into the remittance game

Blockworks

Western Union plans to launch a US dollar-backed stablecoin on the Solana blockchain next year, marking its biggest step yet into digital assets.&nbsp;



The new token, called the US Dollar Payment Token (USDPT), will be issued by Anchorage Digital Bank and will allow Western Union’s 100 million customers to send money internationally without exposure to local currency volatility.



The news was first <a href="https://www.wsj.com/finance/western-union-early-telegraph-pioneer-joins-the-crypto-arms-race-a0aa7f02?mod=hp_lead_pos8">reported</a> by the Wall Street Journal.&nbsp;



The initiative follows the passage of the Genius Act, signed by President Trump in mid-2025, which created the first federal framework for stablecoins.&nbsp;



Western Union <a href="https://www.businesswire.com/news/home/20251028647920/en/Western-Union-Announces-USDPT-Stablecoin-on-Solana-and-Digital-Asset-Network">said</a> the stablecoin will be accessible through partner exchanges and integrated into a new digital asset network connecting crypto wallets and its 400,000 retail outlets worldwide.



According to the WSJ, Western Union CEO Devin McGranahan described the launch as a natural extension of the company’s 175-year history of using technology to connect people.&nbsp;



By using stablecoins — digital tokens pegged to fiat currencies — Western Union aims to cut settlement times and transaction costs while reducing dependence on legacy correspondent banking systems.



This story was updated at 1:30 pm ET to reflect confirmation from Western Union.



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This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Michael McSweeney</a>&nbsp;before publication.



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<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



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Solana

Western Union to launch Solana-based dollar stablecoin

Shalini Nagarajan

With digital assets on the upswing once more, businesses across the board have been locking down blockchain-related patents anew.&nbsp;



Filings for US — and international — patents or trademarks related to cryptocurrency sectors, including <a href="https://blockworks.co/tag/blockchain">blockchain</a> initiatives and <a href="https://blockworks.co/tag/nft">NFT</a> enterprises, are one main means for <a href="https://blockworks.co/news/fico-blockchain-usage-patented">companies to secure related intellectual property</a>. And potentially gain a competitive advantage in the meantime.&nbsp;



As mainstream tech giants, including <a href="https://blockworks.co/tag/amazon">Amazon</a>, hop on the NFT bandwagon, the industry has been parsing the possibility of a spring-to-summer surge in exclusive access to events and collections. 



That could turn passive customers into active players, according to Gökçe Güven, CEO of Web3 tooling platform Kalder. The goal of ratcheting up engagement and branding loyalty could apply to both individual NFT creators and big brands.&nbsp;



“Blockchains and blockchain-based systems are poised to unlock a wide variety of use cases that we probably haven’t even thought of yet,” Güven told Blockworks. “But those use cases need to be structured in a way that incentivizes the individual creator to participate, and this includes legal and regulatory systems.”



While crypto initiatives continue to develop broadly, patents and tradements are on the rise in terms of enforcing the verification that NFTs inherently provide on the blockchains they’re based on, according to Nihar Neelakanti, the chief executive of carbon-backed NFT maker Ecosapiens.&nbsp;



“Trademarks and NFTs are like Cinderella and the magic slipper – a natural fit,” Neelakanti said.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
Added Neelakanti: “NFTs and other digital assets are the best technology to verify identity anywhere on the web and through any transaction, and in that sense, a trademark enhances and enforces the technical protection an NFT may provide through a legal framework.”
</blockquote>



Here’s a snapshot of five businesses with brand recognition that have recently filed patents for Web3 offerings. Companies often file for patents with no expectation of employing a product in the immediate future.&nbsp;



<h2 class="wp-block-heading">Haribo&nbsp;</h2>



German candy maker Haribo has taken a leap into the world of NFTs.&nbsp;



The gummy bear maker registered an NFT-related trademark <a href="https://tsdr.uspto.gov/documentviewer?caseId=sn79336702&amp;docId=ORC20230410174534#docIndex=0&amp;page=1">application</a> with the US Patent and Trademark Office on April 25. The company filed for a number of applications related to “digital collectibles in the nature of downloadable multimedia files.”&nbsp;



Those sectors, per the filing, include “downloadable audio and video recordings, digital avatars and cartoons relating to confectionery.”&nbsp;&nbsp;



<h2 class="wp-block-heading">FICO&nbsp;</h2>



Global analytics software firm <a href="https://blockworks.co/news/fico-blockchain-usage-patented">FICO recently hit a patent jackpot</a>. Not only was it awarded 12 patents, but its use of blockchain for data and model governance was also patented.



FICO, the company behind its popular FICO Credit Score product, has long been a resource used by lenders to assess people’s creditworthiness and decide whether they are suitable for loans or credit cards.



Scott Zelda, the company’s chief analytics officer, has said that blockchain technology has practical value-adds in terms of AI, analytic governance and conducting audits.



FICO’s new patent is all about keeping track of how machine learning models are created, used and monitored. It’s using a “shared ledger.”



<h2 class="wp-block-heading">Fujitsu</h2>



In March, Japanese electronic giant Fujitsu <a href="https://blockworks.co/news/fujitsu-files-trademark-crypto">filed a trademark application</a> covering scores of services, including crypto trading.&nbsp;



The filing for Fujitsu made possible the company’s ambitions to dive into everything from money exchange to digital asset management — on top of brokerage services for crypto.



<h2 class="wp-block-heading">Fidelity Investments</h2>



Boston-based investment management firm <a href="https://blockworks.co/tag/fidelity" target="_blank" rel="noreferrer noopener">Fidelity</a> Investments broke new ground by filing trademark applications in December that indicated <a href="https://blockworks.co/news/fidelity-trademarks-hint-at-big-banks-vying-for-metaverse-customers">plans to service customers in a virtual world</a> powered by digital currencies. 



Three patent applications showed Fidelity’s plans to explore marketing, placements, recruiting and referral services for investment and financial planning in the metaverse. It was also looking into creating an NFT marketplace where one can buy, sell and trade digital goodies.



Read more: <a href="https://blockworks.co/news/fidelity-doubles-down-metaverse">Fidelity Doubles Down on Metaverse With Financial Literacy Experience</a>



<h2 class="wp-block-heading">Formula One</h2>



In the fourth quarter of 2022, auto racing league Formula One <a href="https://tsdr.uspto.gov/documentviewer?caseId=sn97620234&amp;docId=APP20221008081326#docIndex=2&amp;page=1">filed</a> a number of crypto-related trademarks for its “F1” abbreviation, changing from NFTs to retail stores for virtual goods.



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<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Fidelity

These 5 Companies Have Filed Web3 or NFT Patents

Bessie Liu

<div id="highlights-block_6358312e18d07" class="highlights">
 <ul>
 <li>Recent trademark filings could imply that Western Union wants to launch its own virtual currency exchange and cryptocurrency token</li>
 <li>The financial services company has plans to expand offerings into managing and administering digital assets</li>
 </ul>
 
</div>



Western Union has filed crypto-related trademark applications with the United States Patent and Trademark Office, trademark attorney Mike Kondoudis <a href="https://twitter.com/KondoudisLaw/status/1584882175127613440" target="_blank" rel="noreferrer noopener">said</a>.&nbsp;



The <a href="https://tsdr.uspto.gov/#caseNumber=97641182&amp;caseSearchType=US_APPLICATION&amp;caseType=SERIAL_NO&amp;searchType=statusSearch" target="_blank" rel="noreferrer noopener">applications</a> made by Western Union imply that the company intends to launch its very own virtual currency exchange and cryptocurrency token. The financial services company also has plans to expand into managing and administering digital assets.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><a href="https://twitter.com/hashtag/WesternUnion?src=hash&amp;ref_src=twsrc%5Etfw">#WesternUnion</a> has filed 3 trademark applications claiming plans for ▶️ Financial + Banking + Insurance ▶️ Virtual currency exchange + transfer ▶️ Commodity and Crypto trading + brokerage ▶️ Issuing tokens of value …and much more<a href="https://twitter.com/hashtag/Web3?src=hash&amp;ref_src=twsrc%5Etfw">#Web3</a> <a href="https://twitter.com/hashtag/Metaverse?src=hash&amp;ref_src=twsrc%5Etfw">#Metaverse</a> <a href="https://twitter.com/hashtag/Cryptocurrency?src=hash&amp;ref_src=twsrc%5Etfw">#Cryptocurrency</a> <a href="https://twitter.com/hashtag/NFT?src=hash&amp;ref_src=twsrc%5Etfw">#NFT</a> <a href="https://twitter.com/hashtag/DeFi?src=hash&amp;ref_src=twsrc%5Etfw">#DeFi</a> <a href="https://t.co/YvKysvj3mq">pic.twitter.com/YvKysvj3mq</a>&mdash; Mike Kondoudis (@KondoudisLaw) <a href="https://twitter.com/KondoudisLaw/status/1584882175127613440?ref_src=twsrc%5Etfw">October 25, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Until now, Western Union has been relatively cautious about entering blockchain technology.&nbsp;



In December 2018, former Western Union Global Money Transfer President Odilon Almeida <a href="https://www.westernunion.com/blog/en/blockchain/" target="_blank" rel="noreferrer noopener">said</a> adding cryptocurrencies as a customer option would be a big reach, as digital assets had not yet mastered governance, compliance and volatility and received global acceptance.



Added Almeida: “Cryptocurrency might become one more option for a way for assets to be exchanged between people and countries. If that happens, we would be ready to launch.”



It seems that now, four years later, the growing adoption of blockchain technology — alongside the increased competition in the international money transfer space — has finally pushed the financial services giant to tap crypto markets.&nbsp;



Earlier this year, centralized crypto exchange Coinbase had <a href="https://cms.blockworks.co/coinbase-launches-crypto-remittance-pilot-for-mexico/" target="_blank" rel="noreferrer noopener">begun trialing</a> a remittance program for recipients in Mexico, challenging the market dominated by Western Union.&nbsp;



Coinbase claimed its services were <a href="https://cms.blockworks.co/coinbase-launches-crypto-remittance-pilot-for-mexico/" target="_blank" rel="noreferrer noopener">significantly</a> cheaper than traditional cross-border payments and was looking to expand its services globally to the world’s 1.7 billion underbanked.



Even so, Western Union remains one of the <a href="https://www.globenewswire.com/en/news-release/2022/05/09/2438800/0/en/39-8-Billion-Global-Digital-Remittance-Market-Size-Share-Forecast-by-2028-Market-is-Fueled-by-Rising-Banking-Financial-Services-and-Insurance-Globally-Historic-Data-Industry-Emergi.html" target="_blank" rel="noreferrer noopener">biggest players </a>in the global remittance industry, and Almeida has held onto the belief that “[Western Union is] better positioned to benefit from the crypto-currency movement in the long-term than any start-up.”



“Western Union is already better equipped to solve for such variables because it already moves money across 130 currencies and devotes substantial resources to all of those three challenges,” he said.



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Banks

Western Union Trademark Filings Signal Crypto, Web3 Exploration

Morgan Chittum

<div id="highlights-block_613a6c1ce2a49" class="highlights">
 <ul>
 <li>Roughly 70% of Salvadorans do not have traditional financial services like bank accounts, resulting in 24% of the country’s gross domestic product to come from remittances </li>
 <li>President Nayib Bukele said that bitcoin could save Salvadorans $400 million per year in remittance fees</li>
 </ul>
 
</div>



El Salvador became the first country to <a href="https://cms.blockworks.co/el-salvador-buys-550-bitcoins-officially-adopts-the-crypto-as-legal-tender/" target="_blank" rel="noreferrer noopener">officially adopt bitcoin as a legal tender</a> on Tuesday. Residents can use the digital asset to pay their taxes, rent or a simple cup of coffee.



However, with unprecedented adoption comes criticism from vendors who are required to accept payment in bitcoin. Additionally, concerns stem from Salvadorans who believe the digital currency may be too volatile and can’t support their economy, which heavily relies on remittances.



Roughly 70% of Salvadorans do not have traditional financial services like bank accounts, resulting in 24% of the country’s gross domestic product to come from remittances. With an average minimum wage of roughly <a href="https://elsalvadorinfo.net/minimum-wage-in-el-salvador/" target="_blank" rel="noreferrer noopener">$1.50 an hour</a>, <a href="https://publications.iadb.org/publications/english/document/Remittance-Recipients-in-El-Salvador-A-Socioeconomic-Profile.pdf" target="_blank" rel="noreferrer noopener">94% of recipient household</a>s use wire transfers towards everyday necessities like food.



Residents often receive funds from money services providers like <a href="https://www.westernunion.com/content/dam/wu/EU/EN/feeTableRetailEN-ES.PDF" target="_blank" rel="noreferrer noopener">Western Union</a> which can have fees of 30% per transfer depending on the sum being sent, CNBC <a href="https://www.cnbc.com/2021/09/09/el-salvador-bitcoin-move-could-cost-western-union-400-million-a-year.html" target="_blank" rel="noreferrer noopener">reported.</a> President Nayib Bukele said this is one reason why he advocated for bitcoin’s adoption in the first place. Digital wallet, Chivo, allows Salvadorans (living at home or abroad) the chance for free cross-border payments instead.&nbsp;&nbsp;



Bukele has said that these innovations will save Salvadorans $400 million annually in remittance fees.&nbsp;



“Decentralized finance will work in the best interests of those who rely upon remittances and are unduly burdened by the high commissions associated with sending money home, as these would be eliminated by cryptocurrency,” Edan Yago, contributor to DeFi protocol Sovryn, said in a email statement to Blockworks. &#8220;While human beings are naturally averse to the unknown, El Salvador has taken measures to reduce uncertainty, decrease the crypto currency&#8217;s volatility, and incentivize its use.”



Traditional financial institutions like Western Union and MoneyGram who make profit off of these transfers could be in for some trouble, potentially costing them the hundreds of millions that come from Salvadoran remittance fees.



“Anything that charges fees for any type of payment, it doesn&#8217;t have to be remittances, is going to be impacted [by bitcoin],” Validus Power Corp’s Greg Foss said, including merchant services like Visa. “[Companies] better adapt. Creative destruction is necessary for capitalism.”



However, in recent years, companies like Strike, founded by Jack Maller, have begun offering payment services that those who have historically dominated the remittance market have not.&nbsp;



Strike, which is built on Bitcoin’s Lightning Network, allows users to send money anywhere in the world for free. (The Lightning Network can significantly cut down the fees and time it takes to send bitcoin, settling transactions via a network of user-hosted nodes and channels.)



“People will gravitate to the lowest cost alternative. It’s that simple,” Foss said.



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