Amazon and Walmart are working on developing their own U.S. dollar-backed stablecoin, aiming to reduce their reliance on banks and card networks such as Visa and Mastercard. The goal is to enable faster, lower-cost payments and build closed-loop systems centered around a proprietary digital currency.

According to The Wall Street Journal, both retail giants are seriously considering launching a dollar-pegged stablecoin. Their aim: to free themselves from the fees tied to traditional banking systems and card networks. If realized, this move could significantly reshape the U.S. payment infrastructure by diverting large financial flows away from established channels.

Why Stablecoin?

Stablecoins, cryptocurrencies pegged to fiat currencies like the U.S. dollar, offer faster and cheaper transactions. For Amazon and Walmart, this represents an opportunity to drastically cut card processing fees, which can reach up to 3% per transaction.

But the potential goes further: these digital tokens could streamline cross-border payments, enhance loyalty programs, and support the creation of a fully integrated ecosystem based on a proprietary currency. An “Amazon Coin” or “Walmart Dollar” is no longer mere science fiction.

The realization of these stablecoin plans hinges on the Genius Act, a federal bill currently under review by the U.S. Congress. This legislation would establish the legal framework for issuing private stablecoins and has recently passed a key milestone in Washington. If approved, it would give Amazon and Walmart the green light to roll out their tokens at scale.

At this stage, both companies are exploring various strategies — from creating their own stablecoin to partnering with an existing issuer. While nothing is finalized yet, discussions are reportedly well underway.

For traditional financial networks, this move presents a significant threat. A stablecoin backed by the commercial might of Amazon or Walmart could redirect millions of users away from conventional banking systems, undermining revenue from transaction fees.

Walmart is reportedly going even further, actively lobbying for legislative changes to foster more competition in the credit card market.

If these initiatives come to fruition, it would mark a historic shift — where large private corporations move from merely using currency to issuing their own. For the crypto world, stablecoins could soon reach a new scale — and possibly a new allegiance.