Walmart and Amazon’s move to launch their own stablecoins could save the retail giants billions in transaction fees while revolutionizing how millions of Americans shop and earn rewards.
Key Takeaways
- Walmart and Amazon are exploring stablecoin issuance that could save them billions in transaction fees while disrupting traditional payment systems
- The GENIUS Act, providing regulatory framework for stablecoins, has cleared a key Senate procedural vote with bipartisan support
- Other major corporations including Expedia Group and major airlines are considering similar digital currency initiatives
- Stablecoins offer merchants reduced processing fees, faster settlement times, and potential integration with customer loyalty programs
- Walmart has actively lobbied for amendments to increase competition in the credit card sector, reflecting frustration with existing network fees
Retail Giants Entering the Digital Currency Arena
America’s largest retailers are preparing to challenge the traditional banking and payment processing systems with a bold move into digital currencies. According to recent reports, Walmart and Amazon are actively exploring the launch of their own stablecoins—cryptocurrency tokens pegged to the U.S. dollar that could potentially revolutionize how hundreds of millions of Americans make purchases. This strategic shift comes as these retail behemoths seek to reclaim control over their payment ecosystems and reduce the billions they currently pay in credit card processing fees to financial intermediaries like Visa and Mastercard.
“Walmart and Amazon are actively exploring the issuance of their own stablecoins, a move that could upend the traditional payments ecosystem and potentially save these retail giants billions in transaction fees, according to a report from The Wall Street Journal,” stated The Wall Street Journal
This initiative extends beyond just Walmart and Amazon, with other major multinational corporations including Expedia Group and several major airlines also considering similar digital currency strategies. The collective effort represents a significant challenge to the entrenched payment processing industry that has long extracted substantial fees from American businesses. By creating their own payment rails through stablecoins, these corporations aim to reduce costs while gaining unprecedented access to customer spending data and behavior patterns.
The GENIUS Act: Creating a Regulatory Framework
The timing of these corporate stablecoin explorations coincides with significant movement in Washington on digital currency regulation. The GENIUS Act (Generally Encoded Network with Internet Utility Stablecoin), a comprehensive law establishing clear regulatory guidelines for stablecoin issuers, has recently cleared a key Senate procedural vote. This legislation represents the most substantial attempt to date by American lawmakers to create a coherent regulatory framework for digital currencies, with specific provisions that could directly impact Walmart and Amazon’s stablecoin plans.
“Proponents, including bill sponsor Sen. Bill Hagerty (R-TN), argues that the GENIUS Act will protect consumers, spur innovation, and strengthen the U.S. dollar’s global standing,” said Sen. Bill Hagerty (R-TN).
The legislation requires stablecoin issuers to be fully reserved, subject to either federal or state regulatory oversight, and comply with strict anti-money laundering standards. These requirements address concerns about potential financial instability while providing the regulatory clarity that major corporations have been seeking before fully committing to stablecoin implementations. However, the bill has sparked intense debate with over 120 proposed amendments, including controversial provisions like credit card fee caps that directly impact the current payment ecosystem.
Transforming Retail Payments and Loyalty Programs
For everyday Americans, the impact of retailer-issued stablecoins could extend well beyond simple payment processing. These digital tokens offer Walmart and Amazon the opportunity to integrate payment systems directly with their customer loyalty programs, potentially creating new types of rewards and incentives tied to digital currency use. Customers might receive stablecoin rewards for purchases, special discounts for using the retailers’ digital currencies, or seamless integration with existing membership programs like Walmart or Amazon Prime.
Walmart has been particularly aggressive in lobbying for amendments to the GENIUS Act that would increase competition in the credit card sector, revealing the company’s frustration with existing card network fees. This legislative activism suggests Walmart sees stablecoins as part of a broader strategy to reduce dependency on traditional financial service providers while enhancing customer loyalty. With approximately 240 million weekly customers visiting Walmart’s global retail stores and e-commerce websites, the potential scale of adoption for a Walmart stablecoin is enormous.
The retail giants’ move into stablecoins represents a significant challenge to banks, FinTechs, and payment providers who must now adapt to the evolving digital economy or risk disintermediation. As President Trump’s administration continues to promote American innovation and financial independence, these corporate initiatives align with broader goals of reducing unnecessary regulation while enhancing American competitiveness in the global digital economy. The outcome will likely reshape how millions of Americans conduct everyday transactions and interact with the nation’s largest retailers.
