The U.S. financial and retail sectors are on the brink of a payments revolution as major banks and retailers eye the development of proprietary stablecoins. With the proposed Genius Act paving the way for a clear regulatory framework, industry leaders are positioning themselves to harness blockchain technology to reduce transaction costs, speed up settlements, and challenge the dominance of traditional credit card networks.
This shift marks a pivotal moment in the evolution of digital finance—where real-world commerce meets decentralized infrastructure. As stablecoins backed by the U.S. dollar gain momentum, institutions from Walmart to JPMorgan Chase are evaluating how digital dollars can reshape customer experiences, streamline operations, and redefine competitive advantage.
The Genius Act: A Regulatory Catalyst
The Genius Act, aimed at establishing a federal regulatory framework for stablecoins, passed the Senate with strong bipartisan support on June 17, 2025. With a target for full enactment by July 4, the legislation could become a turning point for digital payments in the United States.
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Before the bill is signed into law, companies across industries are already preparing. According to The Wall Street Journal, retail giants Amazon and Walmart have explored issuing their own stablecoins. Even if they choose not to launch native tokens, both are actively assessing how to integrate third-party stablecoins—potentially through consortiums led by established issuers like Circle or Paxos.
Expedia and several major airlines have also held discussions about launching branded stablecoins, signaling growing interest beyond traditional finance.
Bypassing Credit Card Networks to Cut Costs
One of the most compelling motivations behind stablecoin adoption is cost reduction. Retailers pay billions annually in interchange fees—transaction charges imposed by Visa and Mastercard every time a customer swipes a credit card. By adopting stablecoins, merchants could bypass these networks entirely, significantly lowering payment processing expenses.
Moreover, credit card settlements often take several days. In contrast, stablecoin transactions settle in seconds—enabling faster access to working capital. This speed is especially valuable for businesses relying on international suppliers or operating with tight cash flow margins.
Walmart has reportedly lobbied lawmakers to include amendments in the Genius Act that would foster greater competition in the payments space—though the company has publicly stated it currently has no pilot programs or plans to issue its own stablecoin.
Still, trade groups like the Merchant Payments Coalition continue advocating for the legislation, arguing that regulated stablecoins will offer merchants an efficient, low-cost alternative to credit cards—introducing real competition into a long-consolidated duopoly.
Visa and Mastercard Face Disruption
The market reaction has been telling. After the Genius Act passed the Senate, shares of both Visa and Mastercard dropped nearly 10% in a single day—a clear signal that investors see blockchain-based payments as a credible threat.
Analysts at TD Cowen believe the push toward instant payments is inevitable. “Real-time settlement via stablecoins reduces friction across supply chains and benefits consumers,” said Jaret Seiberg. “But it also introduces structural risk for legacy card networks.”
As more businesses consider stablecoin integration, the pressure mounts on traditional players to innovate—or risk losing relevance in an increasingly digital economy.
Banks Join the Stablecoin Race
While retailers aim to cut costs, banks are exploring stablecoins as a defensive strategy against crypto disruption. Several top U.S. financial institutions—including JPMorgan Chase, Bank of America, Citibank, and Wells Fargo—are reportedly in talks about jointly issuing a bank-backed stablecoin.
Discussions also involve key payment infrastructure providers such as Early Warning Services (operator of Zelle) and The Clearing House’s real-time payments network.
These institutions recognize that if tech firms and retailers capture consumer-held value through proprietary stablecoins, traditional bank deposits could face outflows. Stablecoins offer faster, cheaper transactions—especially for cross-border payments that typically take days under current systems.
Bank of America CEO Brian Moynihan has openly acknowledged the possibility of issuing a stablecoin. Similarly, Morgan Stanley CEO Ted Pick emphasized the importance of engaging with regulators to define banks’ roles in crypto-related transactions.
Even international banks are stepping in: France’s Société Générale recently announced plans to launch a dollar-backed stablecoin tradable through its digital asset platform.
Challenges for Smaller Financial Institutions
While large banks and corporations can afford to explore blockchain innovation, smaller regional and community banks face steeper hurdles. Developing secure, compliant stablecoin infrastructure requires significant technical and regulatory resources—barriers that could leave smaller players behind.
There's also concern that if consumers shift funds into corporate-issued stablecoins (e.g., Walmart Coin or Amazon Pay Token), money may drain from local banking systems—undermining community lending and financial stability.
Empowering Small Banks Through Shared Platforms
Enter Fiserv—a leading fintech provider serving around 3,000 community and regional banks in the U.S. The company recently unveiled plans to launch FIUSD, its own dollar-backed stablecoin, alongside a platform that enables its banking clients to create co-branded stablecoins.
This initiative aims to “democratize” access to stablecoin technology, allowing smaller institutions to compete on equal footing.
Takis Georgakopoulos, COO of Fiserv, explained: “Our platform will be interoperable with other major stablecoins and support connections with over 10,000 financial institutions and millions of merchants.”
Fiserv is partnering with blockchain leader Solana, Circle Internet Group (issuer of USDC), and Paxos to ensure security and scalability. The platform is expected to launch by year-end.
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In another strategic move, Fiserv announced that FIUSD will integrate with PayPal’s PYUSD stablecoin—enabling seamless domestic and international fund transfers for consumers and businesses alike.
Core Keywords Driving Digital Finance Evolution
Key themes emerging from this transformation include stablecoin adoption, digital dollar innovation, real-time payments, payment cost reduction, banking disruption, retail fintech integration, blockchain interoperability, and financial inclusion. These concepts are not only shaping industry strategy but also aligning with consumer demand for faster, cheaper, and more transparent financial services.
Frequently Asked Questions (FAQ)
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset—most commonly the U.S. dollar. Examples include USDC and FIUSD.
Q: How do stablecoins reduce transaction fees?
A: Stablecoins operate on blockchain networks that eliminate intermediaries like card networks or correspondent banks, cutting out high processing fees and reducing settlement times from days to seconds.
Q: Are stablecoins safe for everyday use?
A: When issued by regulated entities and backed by audited reserves (like cash or short-term Treasuries), stablecoins can be highly secure. Regulatory frameworks like the Genius Act aim to enforce transparency and consumer protection.
Q: Can small businesses use stablecoins today?
A: Yes—especially through platforms like Fiserv’s FIUSD ecosystem or integrated wallets like PayPal’s PYUSD. As infrastructure matures, adoption among small merchants is expected to grow rapidly.
Q: Will stablecoins replace credit cards?
A: Not immediately—but they offer a compelling alternative for specific use cases such as cross-border remittances, supply chain financing, and instant payouts. Over time, they may significantly erode card network dominance.
Q: How does the Genius Act affect consumers?
A: It could lead to lower prices (due to reduced merchant fees), faster refunds or payouts, and broader access to innovative financial tools—all while ensuring regulatory oversight to protect users.