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Amazon and Walmart are reportedly exploring the possibility of issuing their own stablecoins, according to a Wall Street Journal report citing unnamed sources. These stablecoins would be digital currencies pegged one-to-one to the US dollar, backed by cash reserves etc., designed to be used for payments.

The main motivation behind this move is to reduce transaction fees and bypass traditional banking and payment systems, which currently charge merchants billions annually in interchange fees. Stablecoins could also speed up payment settlements, benefiting merchants with faster access to funds, especially for international transactions.

Both companies have been discussing these plans at high levels, with Amazon focusing on using its stablecoin for online purchases. There is also consideration of forming or joining merchant consortia to share the costs and risks of stablecoin issuance. Other large companies, such as Expedia and airlines, have held similar talks.

The timeline for implementation depends heavily on regulatory clarity, particularly the passage of the Genius Act, which would establish a clear regulatory framework for stablecoins in the US. This legislation is seen as crucial for enabling confident rollout and adoption of corporate stablecoins.

If successful, this initiative could significantly disrupt traditional banking and payment networks by offering a lower-cost, faster alternative for merchant payments, potentially reshaping how large retailers handle transactions.

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