- Amazon and Walmart are exploring the possibility of launching their own stablecoins or adopting an existing digital currency for payments.
- The planned moves by these companies depend on the outcome of the GENIUS Act stablecoin legislation, currently under review in the U.S. Senate.
- Stablecoins may offer lower transaction fees and faster fund settlements compared to traditional credit card payments.
- The GENIUS Act would require large non-financial firms to get approval from federal regulators before issuing stablecoins and restrict the use of payment data.
- Debate continues in Congress, with proposed amendments targeting large tech platforms and e-commerce firms as lawmakers consider final votes on the legislation.
Amazon and Walmart are considering issuing their own stablecoins as a new method for digital payments in the United States. These companies may also look into using an existing stablecoin if they do not create their own. The timing of these plans closely follows ongoing discussions in the Senate about the GENIUS Act, which seeks to regulate how large companies issue and use stablecoins.
Credit card fees for merchants can reach approximately 2.9%, while stablecoin transactions on many blockchains can have very low or no fees at all. In addition, stablecoin payments could allow companies to receive funds almost instantly instead of waiting for delays common with card payment settlements.
A possible approach under consideration is the formation of a merchant consortium led by a stablecoin issuer. Paxos, through its Global Dollar stablecoin, has set up a consortium model for financial services companies where members share interest revenue generated by holding stablecoin balances.
Legislators are paying close attention to how large corporations might use stablecoins. Recent updates to the GENIUS Act would require any major listed company, even those based outside the U.S., to get approval from a committee of federal regulators—made up of the heads of the Federal Reserve, FDIC, and Treasury—before issuing a stablecoin. The company must also agree not to use payment data for marketing or sell it to third parties, and must avoid tying its payment product to other services it offers.
Some lawmakers from both parties have voiced concerns. For example, Republican Senator Josh Hawley has proposed a GENIUS Act amendment that would restrict companies like social media platforms, search engines, communication services, and e-commerce marketplaces with more than 25 million users from issuing stablecoins. Such rules could affect Amazon but might not impact Walmart.
The outcome for stablecoin adoption at major retailers depends on the advancement of the GENIUS Act, which is expected to be voted on next week. Another bill, the STABLE Act, is also being discussed in the House. Lawmakers will need to reconcile both bills before a final law is enacted. Travel company Expedia is another major e-commerce firm reportedly considering the use of digital currencies for payments.
Meanwhile, politicians like Senator Warren have contacted other major firms, such as Meta, to ask about their stablecoin plans—a response to previous attempts like Facebook’s Libra that faced regulatory setbacks. The stablecoin landscape remains under close watch as legislative details are finalized.
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