How America’s largest retailers could disrupt banking and payments with digital dollars.

In a move that could upend the foundations of both the retail and financial sectors, Amazon and Walmart are reportedly in early discussions to launch their own U.S. dollar-pegged stablecoins, according to a Wall Street Journal report. Though neither company has confirmed the initiative publicly, the implications of such a shift are too significant to ignore.

At its core, the strategy is designed to do what these corporate titans do best: eliminate middlemen, reduce friction, and capture more of the value chain. Specifically, branded stablecoins could cut billions in credit card processing fees, streamline cross-border payments, and offer real-time, 24/7 settlement. In doing so, they would also pose a serious challenge to traditional financial networks like Visa and Mastercard, both of which saw market tremors following the report.

Why Stablecoins, and Why Now?

The stablecoin market has surpassed $250 billion, and projections estimate a surge to over $2 trillion by 2028. Once the domain of crypto-native players like Circle and Tether, stablecoins are now drawing the interest of household brands, banks, and even governments. But up until now, a lack of regulatory clarity has held back large-scale adoption. That appears to be changing.

The U.S. Senate recently passed the GENIUS Act — short for Guiding and Establishing National Innovation for U.S. Stablecoins. The bill, which passed with strong bipartisan support (68–30), is arguably the most meaningful regulatory framework for stablecoins in U.S. history. It sets clear guidelines for:

• Collateralization and redemption mechanisms
• AML/KYC requirements
• Audit and reporting standards
• Issuance by both private and public entities

With these guardrails in place, corporate America is now eyeing a regulatory green light to integrate stablecoins into daily operations.

Beyond Retail: A Broader Institutional Shift

This is no longer just a tech or crypto story — it's a full-blown financial modernization wave.

• Shopify has already integrated USDC for e-commerce checkouts.
• Deutsche Bank and Santander are actively piloting stablecoin-backed payment rails.
• JPMorgan Chase recently trademarked “JPMD,” believed to be a proprietary stablecoin initiative.
• Emerging fintechs like Falcon Finance and Rayls are building infrastructures for on-chain liquidity and real-time cross-border settlements.

What’s unfolding is the gradual but inevitable merging of traditional finance with programmable money, where retail transactions, payroll, treasury management, and global trade settlements could all happen on blockchain rails.

A Threat to Banks — or a Call to Innovate?

If Amazon and Walmart do roll out their own stablecoins, they won’t just be issuing store credit in digital form. They will be owning a piece of the monetary stack — effectively becoming quasi-banking entities. This could:

• Reduce dependency on legacy banks and credit networks
• Offer customers loyalty benefits integrated into their digital wallets
• Enable global expansion into underbanked markets

And that raises critical questions for traditional banks: Can they compete in a world where stablecoins are as ubiquitous as debit cards? Or will they be relegated to the back-end plumbing of a new financial order led by tech-native corporations?

Regulatory Caution and the Path Forward

To be clear, stablecoin issuance is no small endeavor. It will require:

• Strict collateral reserves, preferably held in U.S. Treasuries or insured deposits
• Third-party audits and attestations
• Robust cybersecurity and fraud prevention measures

This is why regulatory supervision is non-negotiable, and the GENIUS Act may prove to be the stabilizing force that enables innovation without inviting chaos. If implemented responsibly, branded stablecoins could create safer, faster, and cheaper digital payment ecosystems, ultimately benefiting consumers, merchants, and macroeconomic efficiency.

The Dollar Goes Digital — But Who Controls It?

The digital transformation of the U.S. dollar is no longer theoretical. It’s happening — not just through government-led CBDC efforts, but through the private sector’s ambition to redefine how money moves. If Amazon and Walmart are allowed to launch their own stablecoins, it could be the most consequential shift in retail finance since the invention of the credit card. But it will also ignite fierce debates about monetary sovereignty, corporate power, and systemic risk.

We stand at the edge of a new frontier. The question now is not if, but who will lead it — and how responsibly.

 Originally Published on LinkedIn.