The two largest retailers in the world are considering stablecoin launches—moves that could shift a significant volume of transactions away from the traditional financial system.
The Wall Street Journal reports that both companies are exploring this strategy as they eye the potential passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act—a law designed to provide a regulatory framework for stablecoin transactions.
A brand-specific stablecoin could save Amazon and Walmart billions in transaction fees while enabling instant and transparent payments. Th impact could be especially pronounced in cross-border payments, where global retailers often face high fees and delays.
However, there are also concerns that widespread adoption of stablecoin payments could divert billions from the traditional banking system. So far, neither Walmart nor Amazon have confirmed their stablecoin ambitions yet.
Not Alone in Their Ambitions
The retail giants aren’t alone in these ambitions, as the WSJ also noted that travel company Expedia Group and many major airlines have considered stablecoins of their own.
Meta is also working with stablecoin companies to launch its own stablecoin, with cross-border payments as a primary use case. For example, an Instagram creator could receive an international payment in Meta’s stablecoin and bypass delays, fees, and regulatory barriers.
Getting into the Game
ALthough there are concerns that these stablecoin launches could detract from financial players, more traditional banks are getting into the game themselves. France’s Societe Generale became the first regulated bank to launch its own stablecoin with a euro-backed offering a few years ago, and it now plans to follow this up with a USD-backed stablecoin.
There have also been reports that major U.S. banks like Citi, Chase, Bank of America, and Wells Fargo are considering issuing a joint stablecoin. These financial institutions are enticed by a $250 billion market that already includes a stablecoin from PayPal, and will likely soon include one from Stripe.
Many companies that aren’t launching their own stablecoin are still working to accept coins issued by Tether and Circle. Most recently, e-commerce marketplace Shopify said it would accept Circle’s USDC through a partnership with Coinbase.
According to Shopify, the reason why it is adding this functionality is because stablecoins provide a secure and efficient protocol that can be accepted by the company’s global base of creators.
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