Leading retailers, Walmart Inc. WMT and Amazon.com Inc. AMZN, are reportedly exploring the possibility of issuing their own stablecoins, a move that could potentially shake up the traditional financial landscape.
What Happened: Walmart, Amazon, and other major corporations are reportedly considering the issuance and use of stablecoins, according to sources familiar with the matter, reported The Wall Street Journal on Friday. This move could potentially shift a significant share of their high-volume cash and card transactions outside the traditional financial system, potentially saving them billions in fees.
Stablecoins are digital currencies that are pegged to a fiat currency, such as the US dollar, and are often used to store cash or buy other cryptocurrencies. They are supported by reserves of cash or cash-equivalent assets like Treasuries and are intended to maintain a 1:1 peg with the corresponding fiat currency.
The retailers’ final decision hinges on the Genius Act, a bill designed to create a regulatory framework for stablecoins. Although it recently passed a procedural milestone, it still awaits approval from both the Senate and the House.
Why It Matters: The potential adoption of stablecoins by major retailers could have significant implications for the traditional financial system. This development comes at a time when the stablecoin market is gaining traction, with Treasury Secretary Scott Bessent predicting that dollar-pegged stablecoins could reach a market capitalization of $2 trillion and beyond.
Moreover, retail giant Shopify Inc. SHOP recently announced a partnership with Coinbase Global Inc. COIN to integrate USD Coin (USDC/USD), the world’s second-largest dollar-pegged cryptocurrency, allowing merchants to accept payments in USDC. This move by Walmart and Amazon further underscores the growing interest in stablecoins within the retail sector.
Today’s Best Finance Deals
Earlier this month, UBER UBER CEO Dara Khosrowshahi announced that the company is in “the study phase” of accepting stablecoins for payments.
Despite their potential advantages, stablecoins continue to face skepticism regarding security and regulatory concerns surrounding digital assets. Walmart has reportedly pushed for an amendment to the Genius legislation aimed at increasing competition in the credit card industry.
On a year-to-date basis, Walmart 5.37%, while Amazon is down 3.17%, as per Benzinga Pro.
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.