Walmart and Amazon are preparing to launch their own stablecoins as the U.S. Senate advances landmark legislation that would establish a federal regulatory framework for privately issued digital dollars for the first time.
The legislation, known as the GENIUS Act (S.394), has passed committee and cleared cloture, with a final Senate vote scheduled for June 17.
Per Bloomberg and Wall Street Journal, both retailers are exploring the feasibility of issuing stablecoins backed by U.S. dollars or Treasuries.
The companies have not made formal announcements or filed license applications, but internal teams have begun evaluating technology partners and compliance paths. Their primary incentive appears to be cost reduction.
Card processing fees range between 1% and 3%, and Walmart and Amazon spend an estimated $14 billion annually (this involves net sales, subtracting AWS, and applying an average 1.8% interchange fee) on such costs. A 1% reduction would translate to roughly $1 billion in annual EBITDA gains. Amazon’s payment volume positions it for comparable benefits.
Stablecoins buoyed by the GENIUS Act
The GENIUS Act, sponsored by Sen. Bill Hagerty (R-TN), aims to formalize reserve standards, consumer protections, and operational rules for payment stablecoins. It mandates 100% backing by cash or short-term Treasuries, monthly reserve disclosures, and prioritization of token holders in bankruptcy proceedings.
Issuers operating above $10 billion would face both state and federal oversight. The bill has bipartisan support, with Sen. Kirsten Gillibrand (D-NY) framing it as a mechanism to protect consumers while enabling innovation. Sen. Cynthia Lummis (R-WY) has echoed this sentiment, citing its importance in preserving the dollar’s global role.
Retailer interest in the stablecoin space coincides with increasing support among payment providers for regulated tokenized dollars. According to a recent survey, 85% of such firms now view clear legislation as a green light for adoption.
Nearly half rank “real-time settlement” as the primary advantage over existing rails, ahead of cost savings. This convergence of retail and financial infrastructure interest has prompted major U.S. banks to begin exploring their own joint stablecoin project to maintain a presence in settlement layers.
The GENIUS Act represents a marked shift in Washington’s approach following the demise of Facebook’s (now Meta) Diem project. While Diem faced opposition over monetary policy concerns and corporate control, GENIUS is deliberately narrower.
It avoids algorithmic assets, imposes full-reserve backing, and focuses strictly on payment functionality. These constraints appear designed to provide a politically viable path for private sector innovation without ceding monetary sovereignty.
Walmart and Amazon’s potential entry into the stablecoin space would mark the first time retail giants issue digital dollars under an explicit federal rulebook.
Their consumer base and transaction scale could rapidly accelerate adoption, with checkout stablecoin usage becoming common in e-commerce and supply chain payments.
The Senate’s upcoming vote on June 17 will determine whether the GENIUS framework becomes law, setting the stage for retailer-issued digital dollars to move from internal planning to operational design.
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