Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com -- Major retailers including Walmart (NYSE:WMT) and Amazon (NASDAQ:AMZN) are reportedly exploring the possibility of issuing their own stablecoins, potentially moving large volumes of transactions outside the traditional financial system and saving billions in fees.
According to a Wall Street Journal report, these multinational giants have recently investigated whether to launch their own stablecoins in the U.S. market. Expedia (NASDAQ:EXPE) Group and several large airlines have also discussed similar initiatives.
If Walmart or Amazon were to implement a payments system that circumvents traditional banking channels, it would cause significant concern among the nation’s banks, the report said.
Stablecoins currently serve as instruments for storing cash or purchasing other cryptocurrency tokens.
They are designed to maintain a one-to-one exchange ratio with dollars or other government currencies and are backed by reserves of cash or cash-like assets such as Treasury securities.
The retailers’ final decisions on stablecoin issuance would depend on the progress of the Genius Act, a bill that would establish a regulatory framework for stablecoins, the report added.
While the legislation has passed another procedural hurdle, it still needs approval from both the Senate and House before becoming law.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.