Walmart & Amazon's Stablecoin Plans: A Game-Changer for the Industry?

The implications of such a shift are vast, ranging from consumer savings and faster transactions to regulatory battles and potential risks for financial stability. Meanwhile, the broader economy is grappling with geopolitical tensions, rising gold prices, and oil market volatility, adding layers of complexity to this financial evolution.

Why Walmart and Amazon want stablecoins

Both Amazon and Walmart process billions in transactions annually, incurring hefty fees from traditional payment networks, around 2.9% per credit card transaction. By issuing USD-pegged stablecoins, they could eliminate interchange fees, potentially saving billions. Additionally, blockchain-based settlements could speed up transactions (clearing instantly rather than taking days) and enhance cross-border payments by reducing foreign exchange and processing delays. Given Amazon’s $638 billion in 2024 revenue and Walmart’s $100+ billion in e-commerce sales, both companies are well-positioned to disrupt the payments industry.

Their ambitions depend on the GENIUS Act, which recently passed a Senate procedural vote (68-30) and could soon become law. The bill imposes strict reserve requirements, mandating that stablecoins be 1:1 backed by cash or Treasuries, along with anti-money laundering (AML) compliance rules. However, it also restricts non-financial firms like Amazon and Walmart from issuing stablecoins unless they secure federal approval. Critics, including Sen. Elizabeth Warren, argue that corporate-issued stablecoins could destabilize financial markets and exploit consumer data, while Sen. Josh Hawley (R-MO) has labeled the bill a "giveaway to Big Tech."

If regulators block Amazon and Walmart from issuing their own stablecoins, they may instead join a merchant-led consortium (similar to Paxos’ Global Dollar) to share blockchain infrastructure. Shopify’s recent USDC integration suggests that major retailers are already moving toward stablecoin adoption, signaling a potential industry-wide shift.

Implications for consumers, retailers, and the economy

If retailers save on transaction fees, some of those savings could be passed down as lower prices. Consumers might also benefit from faster refunds and more seamless loyalty programs powered by blockchain technology. However, privacy advocates warn that stablecoins could allow Amazon and Walmart to track spending habits more closely, raising data security concerns.

The prospect of retail giants bypassing traditional payment networks has already impacted financial markets, with Visa and Mastercard stocks dropping 4-5% on the news. Meanwhile, major banks like JPMorgan and Citigroup are exploring their own stablecoins to remain competitive in an evolving payments landscape.

A shift toward corporate stablecoins could weaken Visa and Mastercard’s dominance while potentially improving financial inclusion for unbanked consumers. However, rapid adoption could introduce systemic risks, particularly if stablecoin growth strains Treasury markets due to reserve requirements.

Broader economic context: Gold, oil, and geopolitics

While stablecoins dominate fintech discussions, broader markets are reacting to rising geopolitical tensions.

Gold surges as safe-haven demand spikes: Gold prices rose 1.5% to $3,432 per ounce after Israel’s strikes on Iran, nearing April’s all-time high of $3,500. Expectations of Fed rate cuts—bolstered by soft inflation data—are further supporting gold’s upward momentum.

Oil prices jump 7% on supply fears: Brent crude surged to $74.23 per barrel following the escalation in the Middle East, with analysts warning that prices could exceed $100 if Iran disrupts oil flows through the Strait of Hormuz.

Stock market volatility: The Dow fell 770 points amid the uncertainty, while airline and travel stocks—including Expedia (-3.5%) and United Airlines (-4.4%)—took a significant hit as investors sought safer assets.

What’s next?

• GENIUS Act final vote expected next week—if passed, Amazon/Walmart could move quickly
• Retailers like Target and Costco may follow if stablecoins prove successful
• Geopolitical risks (Middle East, US tariffs) could further disrupt markets, keeping gold and oil volatile

Final thoughts

Walmart and Amazon’s stablecoin ambitions mark a pivotal shift in digital payments, blending corporate innovation with regulatory challenges. If successful, they could reshape retail finance—but not without fierce opposition from banks, lawmakers, and privacy advocates. Meanwhile, investors must navigate gold’s rally, oil shocks, and Fed policy shifts in an increasingly unstable economic landscape.

One thing is clear: The future of money is being rewritten, and corporate stablecoins are at the center of the story.