Amazon and Walmart Exploring Issuance of Dollar-Backed Stablecoins
Amazon.com Inc and Walmart Inc are considering issuing stablecoins backed by the US dollar, aiming to enhance e-commerce and cross-border payments. This initiative seeks to transition substantial cash and card transaction volumes into the Decentralized Finance (DeFi) sector.
- Amazon reported $638 billion in annual revenue for 2024, with global e-commerce sales of $447 billion.
- Walmart’s global e-commerce sales surpassed $100 billion in 2023, constituting 17.8% of total sales.
- Stablecoin adoption could reduce transaction fees significantly for customers and enable faster settlements compared to traditional payment systems.
- Other companies, including Apple and Airbnb, are reportedly exploring stablecoin issuance.
- Societe Generale launched USDCV, a USD-pegged stablecoin aiming for seamless exchanges between traditional currencies and digital equivalents.
The regulatory landscape for stablecoins in the US is evolving, highlighted by the proposed Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS ACT). Key features include:
- Implementation of strict anti-money laundering (AML) and know-your-customer (KYC) protocols.
- Issuers must maintain 1:1 reserves backed by US dollars.
- Federal oversight for large issuers with market caps over $10 billion.
After recent advancements, the US Senate will vote on the GENIUS Act on June 17, following a procedural vote of 62-32.