Retail Giants Eye Stablecoins as Regulation Develops
Walmart and Amazon are contemplating the launch of their own USD-backed stablecoins, in an attempt to speed up their payment networks and further their competitive edge in global e-commerce. The retailers are exploring ways in which brand-specific digital currencies can render their businesses more efficient and less reliant on conventional banking networks, according to people familiar with the matter who spoke with The Wall Street Journal.
While neither retailer has announced the initiative, the potential impact of such a push would be enormous, with billions of transaction flows potentially diverted away from banks and credit card networks.
Huge Cash Flow and E-Commerce Scale Would Force Adoption
Amazon’s total revenue in 2024 was $638 billion, of which approximately $447 billion was generated through e-commerce globally, according to Statista. Walmart’s online sales totaled more than $100 billion in 2023, representing nearly 18% of its annual revenue.
For companies doing commerce on that level, a blockchain technology-based payment rail could result in huge cost savings through reduced transaction fees and real-time cross-border payments.
Shopify and Financial Institutions Already Moving Forward
Other heavyweights are already making inroads into stablecoin space. Shopify will integrate USDC payments by 2025, and companies affiliated with JPMorgan, Citigroup, and Wells Fargo have supposedly considered a collaborative stablecoin project.
In the meantime, DTCC Digital Assets has backed stablecoins as the perfect answer for real-time collateral management, underlining their ability to bring financial infrastructure into the modern era.
Regulatory Clarity Emerging Through GENIUS Act
Amazon and Walmart’s stablecoin plans may hinge on the fate of the GENIUS Act, a bill introduced in the U.S. Senate that would establish clear rules for stablecoins. The bill, which passed a key vote in the Senate on Thursday, dictates requirements for collateralization and insists on compliance with Anti-Money Laundering protocols.
If passed, the GENIUS Act would potentially pave the way for wider corporate adoption of stablecoins, bringing legal certainty to companies that want to use digital currencies in their financial operations.
