Retail Giants Eyeing Stablecoin Launch: Amazon and Walmart Explore Crypto Opportunities
The stablecoin sector is attracting significant attention, not only from the banking industry but also from major American retailers. According to sources at The Wall Street Journal, giants like Amazon and Walmart are exploring the possibility of launching their own cryptocurrencies.
Issuing stablecoins could provide these companies with a new revenue stream, similar to offering credit cards or installment plans, supplementing their existing product sales.
The high yields on Treasury bonds are currently allowing Tether and Circle, the issuers of USDT and USDC respectively, to generate billions in profits from their operations.
A Wave of New Stablecoins Could Emerge in the US
While competition often leads to better products and services, the decentralization of stablecoins could pose challenges for the market.
If Walmart and Amazon launch their own stablecoins, widespread acceptance outside their ecosystems is unlikely, potentially hindering usability for the end-user.
This fragmentation could lead to reduced liquidity within the broader cryptocurrency market.
Some cryptocurrency exchanges have attempted to aggregate all stablecoins into a single currency to mitigate this issue. However, due to the varying risks associated with each stablecoin, this strategy was abandoned.
In May, The Wall Street Journal reported that major banks were collaborating to create a stablecoin, including names like JPMorgan, Bank of America, Citigroup, and others.
Now, in addition to Amazon and Walmart, the report indicates that Expedia Group and even major airlines are also exploring opportunities in this market.
Stablecoins Offer Amazon and Walmart Reduced Costs and Increased Revenue
The advantage for these companies, particularly retailers, lies in the potential to reduce both expenses and payment settlement times. This applies to transactions between their stores and consumers, as well as between stores and suppliers, and even stores and employees.
Amazon’s sales reached US$638 billion in 2024, while Walmart recorded US$648 billion in sales during the same period.
Amazon employs over 1.5 million people worldwide, while Walmart employs approximately 2.1 million people.
The potential savings from eliminating credit card and bank fees are substantial, based on these figures alone.
Furthermore, companies could invest the backing assets of these stablecoins in Treasury bonds to generate additional revenue, explaining why they might not opt for established cryptocurrencies.
These discussions are taking place against the backdrop of the ‘Genius Act,’ a proposed US law aimed at regulating the stablecoin sector, which is currently under review by the Senate.
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