The two largest retailers globally are considering the launch of stablecoins, a move that could significantly redirect transaction volumes away from traditional financial systems.

Exploring Regulated Stablecoin Strategies

A report in The Wall Street Journal suggests that both companies are investigating this strategy with an eye on potential legislation. Specifically, they are looking at the GENIUS Act, a proposed law aimed at establishing regulatory guidelines for stablecoins.

Potential Savings and Global Impacts

A branded stablecoin could potentially save Amazon and Walmart billions in transaction fees while facilitating faster and more transparent payments. The impact is especially notable in cross-border transactions, where retail giants often face high fees and delays.

Not Unique to These Retailers

The retail sector isn’t the only field showing interest; travel company Expedia Group and several major airlines are also considering their own stablecoins for similar reasons. Additionally, Meta is collaborating with stablecoin companies to launch its own coin, focusing on cross-border payments as a key application.

Traditional Banks Getting Involved

Beyond the retail sector, traditional banks are also stepping into the game. French bank Societe Generale launched an euro-backed stablecoin several years ago and is planning to add a USD version. Meanwhile, there are reports suggesting that major U.S. banks like Citibank, JPMorgan Chase, Bank of America, and Wells Fargo are exploring joint stablecoin issuance.

The market for stablecoins is significant, with PayPal already having its own offering, and Stripe likely to follow suit. Many companies not launching their own stablecoins are still working to accept existing ones like Tether’s and Circle’s USDC.

E-commerce platform Shopify recently announced it will accept Circle’s USDC through a partnership with Coinbase, citing the secure and efficient protocol as the reason for this move among its global community of creators.