Amazon, Walmart explore stablecoins: could $2 trillion market reshape retail payments?

Amazon and Walmart are reportedly exploring the issuance of their own brand-specific dollar-backed stablecoins, aiming to revolutionize retail payments by reducing transaction costs and accelerating settlements.

According to The Wall Street Journal, these retail giants see stablecoins as a way to bypass traditional payment systems, potentially saving billions in banking fees. This initiative aligns with the rapid growth of the stablecoin market, which Standard Chartered projects could reach $2 trillion within three years.

Amazon, with annual revenue of $638 billion in 2024 and global e-commerce sales of about $447 billion, and Walmart, whose global e-commerce sales topped $100 billion in 2023 (accounting for 17.8% of its total sales), are evaluating digital currencies to streamline e-commerce and enhance cross-border transactions.

The stablecoin sector is gaining traction amid a more favorable regulatory environment, with cryptocurrencies designed to mirror the dollar nearing mainstream acceptance. Experts note that a stablecoin-based payment rail could offer faster and cheaper transactions, a critical advantage for large-scale retailers.

“Stablecoins have become one of the hottest buzzwords in finance,” reflecting their potential to reshape how payments are processed in retail.

If successful, Amazon and Walmart’s stablecoin initiatives could set a precedent for other merchants, signaling a significant shift in the $2 trillion retail payments landscape.

Amazon and Walmart are exploring issuing their own dollar-backed stablecoins to streamline e-commerce payments and reduce billions in fees. This move taps into a rapidly growing $2 trillion stablecoin market, signaling a potential reshaping of retail payments amid improving crypto regulations.