Walmart, Amazon Explore Stablecoins to Cut Billions in Fees

Major retailers in the United States, including Walmart and Amazon, are reportedly exploring the possibility of issuing their own stablecoins. Stablecoins are designed to maintain a one-to-one correspondence with actual assets, typically the US dollar. This move could potentially reshape the American payment system by allowing these companies to handle a significant portion of their cash and credit card transactions outside of the traditional financial system, thereby saving billions of dollars in fees.

These companies are considering the creation of new payment systems that could reduce their reliance on banks and lower costs. The decision to move forward with this initiative is partly contingent on the passage of the 2025 American Stablecoin Innovation Guidance and Enforcement Act, which aims to provide a regulatory framework for stablecoins. This bill has successfully passed a procedural review in the Senate but still requires voting in both houses of Congress.

Stablecoin-based systems could enable retailers to bypass traditional payment channels, such as credit and debit cards, which incur fees for each transaction. These channels are primarily controlled by Visa and MasterCard. However, the banks that issue these credit cards retain the majority of the fees. One source revealed that Amazon is still in the early stages of exploring its stablecoin options, with discussions focusing on issuing its own stablecoin for online transactions.

American banks and other payment companies are also recognizing the potential value of stablecoins. Several major banks, including JPMorgan, Bank of America, Citigroup, and Wells Fargo, are discussing the possibility of jointly issuing a stablecoin. JPMorgan has had its own stablecoin for internal use for several years, and PayPal has already launched its own digital token.

The potential impact of this move on the broader financial system is significant. If major retailers begin to issue their own stablecoins, it could lead to a shift in how payments are processed in the United States. Traditional financial institutions may need to adapt to this new landscape, potentially leading to changes in how they operate and compete. Additionally, the regulatory environment for stablecoins is still evolving, and any move by major retailers to issue their own stablecoins would likely face scrutiny from regulators.

The exploration of stablecoins by Walmart, Amazon, and Expedia is a clear indication that the financial industry is undergoing a significant transformation. As more companies look for ways to innovate and streamline their payment processes, the use of stablecoins could become more prevalent. This could lead to a more efficient and flexible payment system, benefiting both consumers and businesses alike. However, it remains to be seen how this trend will play out and what the long-term implications will be for the financial industry.