Amazon, Walmart, and Expedia are exploring the launch of their own stablecoins as potential tools for customer payments, according to The Wall Street Journal. The retail giants hope that customers will eventually make purchases using these digital currencies, which could save merchants billions of dollars currently paid to credit card companies and payment processors. This development comes as the U.S. Senate advances legislation that would create the first comprehensive regulatory framework for stablecoins in the United States.

The retailers' interest depends largely on the passage of the GENIUS Act, which would allow merchants to issue their own digital currencies while avoiding the substantial fees associated with traditional payment processing. Current credit card processing fees typically range from 1.5% to 3.5% of each transaction, according to NerdWallet, creating significant costs for high-volume retailers.

Senate Advances Landmark Stablecoin Legislation

The U.S. Senate voted 66-22 to advance the GENIUS Act in May 2025, bringing comprehensive stablecoin regulation closer to reality. ABC News reported that the bipartisan legislation gained support from 16 Democrats despite initial opposition over conflict-of-interest concerns. The bill establishes clear regulatory frameworks for stablecoin issuers and mandates firms hold reserve assets underlying their cryptocurrencies.

Mayer Brown noted that the GENIUS Act defines payment stablecoins as digital assets designed for payment or settlement that maintain stable value relative to fixed monetary amounts. The legislation allows three types of permitted stablecoin issuers: federal qualified nonbank payment stablecoin issuers approved by the Office of the Comptroller of the Currency, subsidiaries of insured depository institutions, and state-regulated entities meeting federal standards.

Consumer groups remain opposed to the legislation. In February 2025, Consumer Reports and other organizations asked lawmakers to vote against the GENIUS Act, arguing it represents "a crypto industry wish list, not an adequate regulatory regime that provides necessary oversight, customer protection, and stability."

Payment Processing Costs Drive Retail Interest

Retailers face mounting pressure from credit card processing fees that continue to rise. The Motley Fool reports that merchants paid a record $172 billion in payment processing fees in 2023, with the National Retail Federation claiming these costs amount to approximately $1,200 per year for American consumers through higher prices or surcharges.

For major retailers processing millions of transactions daily, even small percentage reductions in processing costs translate to substantial savings. American Express cards carry some of the highest rates, ranging from 1.43% plus $0.10 to 3.30% plus $0.10 per transaction, according to Swipesum. Interchange fees, which represent the largest portion of processing costs, are set by card networks and paid to issuing banks.

Stablecoins would function as in-house currencies for retailers, enabling quicker transactions and reducing dependence on traditional payment intermediaries. These digital tokens would also facilitate faster cross-border transactions, particularly beneficial for companies with international operations. However, unregulated stablecoins carry inherent risks, as demonstrated by Tether's $41 million fine in 2021 for misstating its reserves.

Banking Industry Responds to Growing Competition

The stablecoin market has experienced explosive growth, with Chainalysis reporting total market capitalization approaching $232 billion as of May 2025. This growth has prompted traditional banks to consider their own stablecoin initiatives to maintain competitive positions.

PYMNTS revealed that JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup are exploring a jointly operated stablecoin project. The banks aim to leverage existing payment infrastructure while providing regulated alternatives to crypto-native stablecoins. These discussions remain in early stages and depend on favorable regulatory developments.

Major banks have become increasingly concerned about stablecoins potentially capturing significant deposit and payment volumes traditionally held by regulated financial institutions. This apprehension has intensified as technology giants and retailers consider entering the stablecoin market with potentially lower operational costs and regulatory burdens.

The banking industry's response reflects broader concerns about disintermediation in financial services. Traditional institutions recognize that widespread stablecoin adoption could threaten their role as payment intermediaries and deposit holders, prompting strategic repositioning efforts to maintain relevance in evolving payment ecosystems.

Industry experts predict continued regulatory clarity will drive institutional adoption. Bitwise forecasts the stablecoin market could reach $400 billion in 2025, driven by congressional legislation, fintech adoption, and global payment applications. This growth trajectory suggests retail stablecoin initiatives may represent just the beginning of broader digital currency integration in mainstream commerce.

Related Reading on Morrow Report

The Morrow Report's Alternative Financial Systems Index provides comprehensive analysis of emerging financial technologies and their effectiveness compared to traditional systems. This detailed resource examines transaction costs, adoption rates, and user retention across various alternative financial platforms including stablecoins, decentralized finance protocols, and peer-to-peer payment networks. Readers will gain valuable insights into the quantitative factors that determine success in alternative financial systems, including data showing that systems with transaction costs below 0.5% of traditional finance achieve three times higher adoption rates than conventional alternatives.