The Retail Giants Eye Stablecoin Launches
The two largest retailers in the world are considering stablecoin launches that could shift significant transaction volumes away from traditional financial systems.
According to reports by The Wall Street Journal, both companies are exploring this strategy as they watch for potential passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act—a law aimed at providing a regulatory framework for stablecoin transactions.
A brand-specific stablecoin could save Amazon and Walmart billions in transaction fees while enabling instant, transparent payments. The impact is expected to be particularly noticeable in cross-border payments, where high fees and delays are common issues for global retailers.
Other Companies Considering Stablecoins
The retail giants aren’t alone in their ambitions. Travel company Expedia Group and several major airlines have also considered stablecoin launches.
Meta is collaborating with stablecoin companies to launch its own stablecoin, with cross-border payments as a primary use case. For instance, an Instagram creator could receive international payments in Meta’s stablecoin, bypassing delays, fees, and regulatory barriers.
Traditional Banks Entering the Market
While concerns persist about these stablecoin launches potentially detracting from traditional financial players’ influence, more conventional banks are getting into the game themselves. France’s Societe Generale launched its first regulated bank stablecoin a few years ago with a euro-backed offering and is now planning to introduce a USD-backed version.
Big Banks Also Consider Joining the Stablecoin Scene
There have been reports that major U.S. banks like Citibank, JPMorgan Chase, Bank of America, and Wells Fargo are considering issuing a joint stablecoin. These financial institutions find appeal in a $250 billion market that already includes a stablecoin from PayPal and is expected to soon include one from Stripe.
Companies Accepting Stablecoins
Many companies aren’t launching their own stablecoin but are still working to accept coins issued by Tether and Circle. For example, e-commerce marketplace Shopify has announced it will accept Circle’s USDC through a partnership with Coinbase.
The rationale behind this move is that stablecoins provide a secure and efficient protocol for acceptance by the company’s global base of creators.