Walmart and Amazon Looking Into Releasing Their Own Cryptocoins

In a move that could reshape how Americans shop, Amazon and Walmart are actively exploring the launch of their own corporate stablecoins as an alternative payment option for customers.

These stablecoins, digital currencies pegged to the U.S. dollar or another real-world asset, aim to provide price stability that popular cryptocurrencies like Bitcoin lack.

The motivation behind this push is clear: both companies are eager to reduce their dependence on traditional credit card networks and the billions they pay annually in transaction fees to companies like Visa and Mastercard.

According to the Wall Street Journal, U.S. merchants collectively paid $172 billion in transaction fees in 2023 alone—a near 50% increase from pre-pandemic levels as more consumers opted for contactless and digital payments.

Other major brands such as Expedia and certain airlines are reportedly investigating similar options to streamline payments and save on costly processing charges.

News of these crypto ambitions quickly sent ripples through the financial sector, with stocks for Visa, Mastercard, American Express, and PayPal dropping by as much as 6% on the day the plans surfaced.

Despite the market impact, shares of Amazon and Walmart themselves held steady, reflecting investor optimism about their potential to disrupt payment infrastructure.

If successful, these new stablecoins could enable both retailers to operate private payment networks, shifting significant financial leverage away from traditional banks.

For consumers, this could translate to faster, more seamless transactions and possibly new incentives for using retailer-backed digital coins.

However, the stakes are enormous, as both companies would need to maintain vast reserves to guarantee their stablecoins remain reliably pegged to the dollar.

With this bold step, Amazon and Walmart are not just challenging Wall Street—they are angling to change the everyday habits of millions of shoppers.

Stablecoins are not new to the cryptocurrency landscape, but their potential deployment by Amazon and Walmart would represent an unprecedented mainstream adoption in retail.

Unlike volatile assets such as Bitcoin or Ethereum, stablecoins are designed to maintain a steady value by being pegged to a stable asset like the U.S. dollar or even gold.

This makes them attractive to both businesses and consumers wary of unpredictable price swings that make traditional cryptocurrencies impractical for everyday use.

To issue a stablecoin, companies must hold substantial reserves that match the total value of coins in circulation, creating trust that each coin is redeemable for a real dollar.

However, this system is not without risks; if reserves fall short or lose value, the stablecoin can “depeg,” causing panic and rapid loss of value for holders.

Historically, failed stablecoins have triggered market chaos, as seen when some tokens lost their peg and investors fled en masse.

Amazon and Walmart’s brand strength and financial firepower would give them a unique edge in maintaining confidence in their coins, compared to smaller or less-established issuers.

For the retailers, deploying stablecoins would mean bypassing banks and credit card networks, enabling direct, low-cost, and instantaneous settlement of payments.

But regulators are watching closely, wary of systemic risks if corporate stablecoins ever malfunction or grow too large to control.

Thus, while the idea is tantalizing, implementation will demand careful navigation of both financial responsibility and public trust.

Ultimately, success will hinge on whether these retail giants can guarantee stability, liquidity, and seamless convertibility to earn mass adoption.

For decades, the backbone of U.S. retail transactions has been the credit card industry, with fees quietly siphoning billions from every purchase.

Every time a customer swipes a card at checkout, merchants pay a percentage to banks and payment processors, known as interchange fees.

In 2023 alone, U.S. merchants shelled out $172 billion in these fees—a significant financial burden that has only grown with the rise of digital payments.

The surging popularity of contactless and mobile transactions during the pandemic accelerated this trend, further inflating costs for major retailers.

For massive chains like Amazon and Walmart, whose margins are already razor-thin, even a small reduction in these fees could mean hundreds of millions in annual savings.

Traditional payment networks like Visa and Mastercard have been slow to lower costs, driving retailers to seek alternative solutions with lower transaction overhead.

By launching their own stablecoins, Amazon and Walmart hope to bypass much of the existing payment architecture, conducting transactions directly with customers and cutting out intermediaries.

This could also give them richer data on customer spending, further increasing their leverage in the evolving digital economy.

Competitors in travel, hospitality, and other sectors are watching closely, eager to replicate these potential savings and efficiencies.

The mere prospect of retailer-issued stablecoins has already rattled the financial sector, with major credit card stocks falling sharply as investors anticipate a shift.

If this experiment succeeds, the entire payment landscape—from processing times to customer incentives—could be reimagined by retailers, not banks.

While Amazon and Walmart are eager to push forward, their crypto ambitions depend on more than just market readiness—they hinge on the political climate in Washington.

The U.S. Senate is currently considering the so-called Genius Act, a sweeping bill that would create a regulatory framework for private companies to issue stablecoins.

The bill, which recently cleared an initial procedural vote, must still pass both houses of Congress before becoming law.

If enacted, it would establish clear guidelines for how stablecoins are created, managed, and audited, giving companies legal certainty as they move into digital payments.

The legislation addresses longstanding regulatory concerns about consumer protection, money laundering, and systemic risks from large-scale private digital currencies.

Supporters argue that a well-crafted regulatory framework could spur innovation while safeguarding financial stability and consumer interests.

Opponents worry about potential loopholes and the ability of regulators to keep pace with fast-moving crypto technology.

Both Amazon and Walmart have so far declined to comment publicly on their plans, citing the evolving legal landscape and the need to comply with future regulations.

Industry analysts say a regulatory green light would open the floodgates for other major brands to follow suit, potentially leading to a rapid expansion of corporate stablecoins.

Regardless of the bill’s fate, Congress’s attention signals a new era where digital assets are at the heart of national economic policy.

As the debate continues, the business world is watching closely, knowing that the rules set now will shape the future of payments for decades to come.

The news that Amazon and Walmart are considering stablecoins sent shockwaves through financial markets, particularly among traditional payment providers.

Visa, Mastercard, American Express, and PayPal all saw their stocks tumble between 2% and 6% as investors braced for potential disruption.

Credit card companies stand to lose billions in transaction fees if merchants adopt alternative digital payment systems that bypass legacy networks.

Analysts from TD Cowen and other financial institutions warned that a large-scale shift to crypto payments is “inevitable,” and poses a major risk to established players.

Meanwhile, the share prices of Amazon and Walmart remained stable, reflecting investor confidence in the companies’ ability to innovate and adapt.

Other tech-savvy companies, such as Expedia and various airlines, are reportedly exploring their own stablecoin initiatives in anticipation of regulatory clarity.

Financial institutions are left weighing their options, with some considering launching their own joint stablecoins to compete.

Wall Street’s response underscores the seismic nature of this potential shift, as the world’s largest retailers and financial institutions position themselves for a new payments arms race.

For consumers, this upheaval could mean more choices at checkout and the potential for lower costs, but it also raises questions about privacy, security, and the role of regulators.

If successful, the launch of retailer stablecoins would mark one of the biggest transformations in the history of American payments.

The next few months will reveal whether Wall Street’s anxiety is justified—or just the beginning of a larger upheaval.

At their core, stablecoins are designed to combine the best of both worlds: the convenience and speed of cryptocurrencies with the reliability and familiarity of traditional money.

They achieve this by pegging each digital coin to a real asset, most commonly the U.S. dollar, ensuring that one coin is always redeemable for one dollar.

To maintain this peg, the issuing company must hold reserves equal to or greater than the total number of coins in circulation, creating a backstop against volatility.

Transactions made with stablecoins can settle almost instantly, reducing the need for slow and expensive intermediary processing typical of card networks.

This instant settlement is attractive to retailers who want to streamline operations and reduce back-office costs.

However, the system’s stability depends on absolute confidence that every stablecoin can be exchanged for its underlying asset on demand.

Any sign that reserves are lacking or improperly managed can trigger a “run,” causing the coin to lose value rapidly—a scenario that has played out disastrously in the crypto sector before.

Amazon and Walmart, with their scale and transparency, would be expected to adhere to strict reserve requirements and frequent audits to maintain trust.

Beyond just retail payments, stablecoins could enable new forms of loyalty programs, cross-border shopping, and financial services for underserved customers.

For regulators and financial professionals, the challenge is ensuring these systems remain robust even under stress or in times of market uncertainty.

If managed properly, stablecoins could become a mainstay of the global payment system, but only if companies maintain transparency, solvency, and a steady hand.

The ambitions of Amazon and Walmart are informed by the stumbles of previous attempts at corporate digital currency, most notably Facebook’s failed Libra (later Diem) project.

In 2019, Facebook announced Libra, a bold plan to create a global cryptocurrency that would serve its billions of users.

Almost immediately, lawmakers and regulators across the U.S. and Europe raised alarms, fearing Facebook’s unchecked influence and the risks of a privately issued global currency.

The project quickly drew scrutiny from the House Financial Services Committee and the Senate Banking Committee, leading to public hearings and widespread criticism.

Facebook’s effort was plagued by regulatory hurdles, shifting strategies, and a failure to win over both governments and the public.

Despite multiple rebrands and attempted partnerships, Libra never made it to market and was ultimately shelved.

The episode stands as a cautionary tale about the complexities of launching private digital currencies, especially at global scale.

Amazon and Walmart appear determined to learn from Facebook’s experience, prioritizing regulatory engagement and emphasizing transparency in their plans.

Still, their market power and reputation may give them advantages that eluded Facebook, making their entry into the stablecoin space a watershed moment.

If these giants succeed where others failed, they could set the standard for how corporate cryptocurrencies are issued, managed, and regulated in the years ahead.

The key distinction between corporate stablecoins and legacy cryptocurrencies like Bitcoin lies in stability, brand trust, and real-world utility.

Bitcoin and similar digital assets are highly volatile, making them attractive as speculative investments but unsuitable for everyday commerce.

Corporate stablecoins, by contrast, promise consistent value and are backed by the financial strength of household-name brands.

Because these companies must safeguard their reputation and customer trust, they are incentivized to keep the currency stable and reliable.

Retailers can also use their own digital coins to offer exclusive rewards, instant cash-back, and new shopping experiences, deepening customer loyalty.

By cutting out banks and payment processors, companies can innovate faster and offer lower prices, potentially passing savings on to consumers.

However, corporate stablecoins could also raise the specter of walled gardens, where only certain merchants accept the coins, limiting interoperability and choice.

To address these concerns, many advocates call for interoperability standards, ensuring coins can move freely between retailers and be easily converted to cash.

Brand reputation will play a decisive role, as consumers are far more likely to trust their funds to Amazon or Walmart than an obscure crypto startup.

If done right, corporate stablecoins could become a new “digital dollar” for retail, blending the best features of tech innovation with the security of established institutions.

Yet their success will depend on consumer trust, robust oversight, and the willingness of regulators to foster—not stifle—responsible growth.

Amazon and Walmart’s crypto ambitions are only the tip of the iceberg in a rapidly evolving payment landscape.

Travel giants like Expedia, major airlines, and a host of fintech firms are actively researching or piloting stablecoin solutions for their customers.

Wall Street banks including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are also considering joint ventures to issue stablecoins, seeking to defend their turf as the payment world evolves.

The overall stablecoin market now stands at $251 billion, with established tokens like Tether’s USDT and Circle’s USDC dominating more than 86% of the market share.

Even fintech giant PayPal has thrown its hat into the ring, though its PYUSD stablecoin has so far failed to capture significant market traction.

Political figures have also waded into the debate, with President Trump’s own USD1 coin generating headlines and raising questions about the intersection of government, finance, and tech.

The proliferation of corporate coins could unleash a wave of innovation—but also risks fragmenting the market if standards and regulations lag behind.

At the same time, the race to launch stablecoins is being closely watched by global regulators, who worry about the systemic implications of large-scale corporate currencies.

As the playing field gets more crowded, the winners will be those who can balance innovation with trust, speed with security, and customer experience with regulatory compliance.

The stakes are enormous, and the next phase will likely determine the dominant players for the digital money era.

With Congress poised to decide on the Genius Act and tech titans moving quickly behind the scenes, the retail payments landscape is on the cusp of historic change.

If Amazon, Walmart, and others secure regulatory approval, American shoppers could soon find themselves paying with digital dollars issued by their favorite stores.

Such a shift could radically reduce payment friction, lower costs, and offer new perks for those who embrace the new technology.

At the same time, these innovations bring fresh challenges—around privacy, data protection, market concentration, and the risk of financial exclusion for those not using digital currencies.

Traditional banks and payment networks face an existential threat if they fail to adapt, while new alliances and partnerships may emerge to compete with corporate giants.

The outcome of the Genius Act and subsequent industry moves will reverberate far beyond checkout lines, influencing how money itself is created, stored, and spent.

For the U.S. government, the rise of private stablecoins presents both opportunities and risks in terms of economic policy, financial stability, and global competitiveness.

As the dust settles, American consumers, businesses, and regulators will all have a stake in shaping the next chapter of digital finance.

Whatever happens, one thing is clear: the age of retailer-backed digital currency is no longer a distant future—it’s arriving now, and the world is watching closely.

The question is no longer whether stablecoins will play a role in the economy, but who will lead—and who will be left behind.