- Major retailers, including Walmart and Amazon, have explored issuing or adopting stablecoins
- The move could help companies sidestep card fees and accelerate cross-border payments
- Progress hinges on the Genius Act, a bill laying the groundwork for U.S. stablecoin regulation
Some of the largest U.S. retailers are actively exploring ways to integrate stablecoins into their operations, either by issuing their own tokens or adopting existing ones. Walmart, Amazon, and other global companies have held internal discussions on how stablecoins could reduce their reliance on traditional financial networks in moves that could reshape how billions of dollars flow through the payment system. Such moves would potentially slash fees and processing times for merchants following decades of credit and debit card companies taking a percentage of all their sales.
Tech and Retail Muscle in Payments
According to The Wall Street Journal, Amazon has discussed issuing its own stablecoin to facilitate online purchases, while Walmart and others have explored both internal solutions and potential collaborations with existing stablecoin issuers. Travel and airline companies, including Expedia Group, have also reportedly entered early-stage discussions over such a move, exploring the concept of private stablecoins. The shared motivation is clear: stablecoins offer an opportunity to bypass the entrenched credit card infrastructure controlled by Visa and Mastercard, enabling faster settlements, fewer intermediaries, and significantly lower fees.
Stablecoins, which are typically pegged one-to-one to government currencies and backed by cash or Treasury reserves, are already used in the crypto sector for everything from trading to savings. For merchants, the appeal lies in quicker payment settlement times, especially for international suppliers, and reduced dependence on banking intermediaries, which can delay cash flow and inflate costs. “The push to instant payments is inevitable and represents a risk to Visa and Mastercard,” wrote TD Cowen analyst Jaret Seiberg in a recent research note, and the stock market showed how right she was: both companies suffered 5% drops in share pieces on Friday.
Relying on Genius
Progression from exploratory discussions to actual planning relies on the progress of the Genius Act, a proposed federal bill that would establish a regulatory framework for stablecoin issuance and usage in the U.S. The bill has recently passed a key procedural stage but still faces hurdles in both the Senate and the House, although its progress has been aided by the Merchants Payments Coalition which has met with lawmakers in recent months to push for its passage. The Coalition argues that regulatory clarity on the matter would allow businesses to adopt lower-cost payment solutions and finally challenge the Visa-Mastercard duopoly.
Walmart has reportedly gone a step further, lobbying for an amendment to the legislation that would increase competition in the credit card sector as a whole.
Whether or not these companies ultimately launch their own coins, their actions signal a growing willingness to challenge the financial status quo, one that could reshape the payments industry if regulators give them the green light.
