Walmart Amazon Explore US Dollar-Pegged Stablecoins to Cut Merchant Fees

Walmart and Amazon are reportedly exploring the possibility of issuing their own US dollar-pegged stablecoins. This move comes as part of a broader trend of institutional adoption of stablecoins amidst evolving regulatory landscapes in the United States. The potential issuance of these stablecoins could significantly reduce merchant fees, which currently range from 1% to 3% for each credit card transaction processed through networks like Visa and Mastercard. For large corporations handling billions of transactions, these fees accumulate to substantial annual expenses.

One of the primary advantages of stablecoins is the potential to expedite payment settlements. Traditional card payments typically require 1-3 business days to settle, whereas stablecoin transactions can be completed nearly instantaneously. This speed could disrupt the dominance of traditional financial institutions by offering a more efficient and cost-effective payment solution.

Both Walmart and Amazon are in the early stages of considering this initiative, evaluating options such as developing private coins or partnering with third-party stablecoin providers. The potential launch of these stablecoins would depend on the progress of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. If enacted, this legislation would establish a regulatory framework for the legal issuance of stablecoins in the US, paving the way for major companies to adopt or issue stablecoins as an alternative to existing payment systems.