Walmart, Amazon Explore Issuing Stablecoins

Walmart, Amazon, Expedia and other companies have explored whether to issue their own stablecoins in the U.S. amid a rush into the market ahead of legislation moving ahead in Washington that would legitimize the tokens, The Wall Street Journal reported.

The companies are exploring using stablecoins to circumvent traditional payment systems, which could help reduce fees and allow them to pay overseas suppliers faster. They have also explored using stablecoins issued by others, such as a consortium of merchants, the publication reported. Financial companies are also looking into stablecoins. The Depository Trust and Clearing Corp., the clearinghouse that processes U.S. stock trades, along with a consortium of big banks including JPMorgan Chase, Bank of America, Citigroup and Wells Fargo, are considering whether to issue the coins.

Amazon’s efforts are still in the early stages, and some of the discussions have been about issuing its own coin for online purchases, the publication said. Representatives from Amazon, Walmart and Expedia did not immediately reply to requests for comment.

Stablecoins are pegged 1:1 to dollars and backed by cash and U.S. Treasurys. They are used by crypto traders and for international money transfers. The U.S. Congress is deliberating stablecoin legislation that would legitimize the tokens, with a Senate floor vote set for next Tuesday. The legislation, if approved, could pave the way for their broader use in payment and finance.