On June 5, cryptocurrency company Circle Internet Group (CRCL 8.85%) went public with an initial public offering (IPO), and it was a blockbuster success. The IPO stock is the company behind the second-largest stablecoin USD Coin (USDC -0.00%), and the stock is still up more than 75% from where it started trading, showing that investors are very comfortable with this emerging space.
This space is indeed emerging. Stablecoins have existed for years, but they lacked regulatory clarity. This all changed with the passage of the GENIUS Act in July. The name stands for the Guiding and Establishing National Innovation for US Stablecoin Act. And major retailers were standing by ready to take action as soon as it passed.
Among these are the two biggest gorillas in the retail jungle: Walmart (WMT 0.06%) and Amazon (AMZN 2.06%). Both businesses have been preparing for action with stablecoins behind the scenes. And now investors want to know if this is an exciting development or one that will end poorly.
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Why retailers are jumping on the stablecoin bandwagon
According to The Wall Street Journal, executives at both Walmart and Amazon are looking to issue their own stablecoins. The value of stablecoins is fixed to something stable, such as the U.S. dollar. In the dollar example, an issuer creates one new dollar stablecoin for every dollar it holds in reserves.
Retailers presently process a large number of credit card transactions. Payment companies such as Visa and Mastercard take around 3% of every transaction. And this is money that players such as Walmart would like to have back. Bypassing traditional payment rails with stablecoins could be a way to do this.
Moreover, stablecoin issuers make money from the large pile of cash they hold on the sidelines in reserves. For instance, in the first half of 2025, Circle has generated about $1.2 billion in revenue from the more than $60 billion it holds in stablecoin reserves for USD Coin.
In other words, both Walmart and Amazon could save tons of money if its customers were using stablecoins instead of credit cards. Additionally, these two retail giants could make a ton of money in reserve income if customers were using a stablecoin that the companies had issued themselves.
It's no wonder that Walmart and Amazon want to jump on the stablecoin bandwagon now that there's regulatory clarity with the GENIUS Act.
But what's the risk?
Stablecoin adoption could pose a risk to consumers. Bank deposits are insured, whereas stablecoins are not. If everyone from retailers to financial institutions is issuing coins, it's possible for reserves to be mismanaged, leading to unprotected losses for adopters.
A worst-case scenario in which one or more major stablecoins goes down could lead to revisions to regulations.
However, for investors, stablecoin adoption is a much more exciting idea. Consider that Amazon had just a 6% operating profit margin on net sales in North America in the first half of 2025. Margins could get a boost if it's paying less in payment-processing fees. Likewise, Walmart's profit margin was just 4% during its fiscal 2025 (which ended in January), and it would consequently benefit as well.
But don't worry too much about credit card companies because they're rolling with the punches. Visa, Mastercard, and others are creating their own stablecoins as well as providing stablecoin infrastructure to financial institutions. While investors are understandably concerned for the future of these businesses as stablecoin adoption grows, they seem ready to pivot as necessary.
Moreover, systemic changes to the financial system likely won't happen overnight, giving Visa and Mastercard shareholders time to calmly wait and see how things develop.
For investors, developments in the stablecoin space could be more exciting than troublesome. Investing in stablecoin issuers could be a lucrative opportunity as they gain adoption. And retailers could see profits improve as they save money on payment-processing fees.
In conclusion, stablecoins from Walmart and Amazon may never catch on. But there's potential upside for these businesses if they do. Consumers holding stablecoins do face risks that they otherwise don't face with bank deposits, which is something to keep in mind. But looking at the big picture, I believe there is opportunity for investors in the stablecoin space.
