How Walmart, Amazon and other nonbanks chase stablecoins

June 30, 2025 2:32 PM

As banks prepare to issue stablecoins, they get ready to join a crowded existing market of fintechs and other nonbanks that are already active, and in some cases have been for years.

The progress of the GENIUS Act has spurred banks to forge stablecoin strategies, with Citigroup, Bank of America and dozens of others considering launching their own stablecoin, joining a stablecoin consortium or both. Other large banks such as JPMorganChase have developed alternatives to stablecoins while considering future strategy.

"We can't think of anything else that's generated a comparable amount of investor interest in such a short period of time in our nearly seven years covering payments," Jeffries analysts said in a research note.

While the bank stablecoin market has yet to emerge, here are a few of nonbanks that have existing stablecoins or are planning to create one.

Tiffany Hagler-Geard/Bloomberg

Tether

Any conversation about stablecions still starts with Tether, the largest stablecoin issuer by market capitalization.

El Salvador-based Tether issues USDT, the world's largest stablecoin with a market capitalization of about $156 billion.

Tether plans to issue a new stablecoin for institutional clients that want to improve settlement between banks. As new stablecoins enter the market, Tether plans to differentiate itself by focusing on cross-border payments in emerging markets, where the local currencies are less stable and there's more likely to be a near-term market for stablecoin payments.

"The banks and others will go after the 'Western World' but that leaves a huge market for us to go after," Tether CEO Paolo Ardoino said in an earlier interview. "Emerging markets are considered a niche but it's not really a niche."

Hollie Adams/Bloomberg

Circle

Circle's successful IPO in May contributed to the stablecoin mania. Circle issues USDC, the world's second largest stablecoin after Tether, and for years it has been adding financial services products as it attempts to compete with payment fintechs such as Block and PayPal.

Circle has also launched a payment network that connects financial institutions, banks, payment companies and digital wallets to process payments instantly in different currencies and markets.

Circle views banks as partners in building a stablecoin market, unlike Tether, which has taken a more competitive approach.

Mastercard

Besides partnering with PayPal, Mastercard recently made several other moves designed to support stablecions.

While Mastercard is not planning its own stablecoin, the card brand has upgraded its Mastercard Move transfer feature to enable financial institutions and digital wallets to send and receive stablecoins.

The card network is also enabling its Mastercard One centralized credential for the digital asset market, with Fiserv as the initial adopter.

The card brand and Fiserv additionally plan to connect Fiserv's Digital Asset Platform, which is designed to power bank-branded stablecoins, with Mastercard's Multi-Token Network, a venue for other parties to develop digital asset products and validate users for financial institutions, fintechs and central banks.

Visa

Visa has noted the potential value of stablecoins in improving settlement, enhancing cross-border payments and serving as an on-ramp or off-ramp for card payments.

"In 2025, we believe that every institution that moves money will need a stablecoin strategy," Visa said in its stablecoin position paper. "As more players in the payments ecosystem explore this powerful new technology, Visa stands ready to help our partners navigate the transformation, bringing the scale, trust and innovation needed to help build the next generation of global payments."

While stablecoins are often cast as a threat to Visa and Mastercard, Jeffries analysts said that's likely not the case, at least in the short term. "The current system works. It's convenient, secure, and provides rich rewards. We don't see what would compel a consumer to use stablecoins as a payment method," Jeffries said.

Fiserv

The bank technology seller plans to issue its own stablecoin, FIUSD, by the end of the year. It is also offering a platform that banks and credit unions can use to build their own stablecoins or other digital assets.

Both of these moves could bring thousands of smaller banks and credit unions into the stablecion market, where large banks have been among the names floated as potential issuers.

Amazon

Rival retail giants Amazon and Walmart have often been at odds with Visa and Mastercard regarding payment fees. Both have also been linked to potential stablecoins that could help them reduce card fees.

In Amazon's case, a stablecoin could work like a gift card, a low-cost payment option. Crone Consulting estimates a 1% shift in Amazon's total payment volume to a gift card model — the lowest cost tender, from a premium card. The highest could equal $1.5 billion in yearly savings.

Walmart

Walmart could also achieve similar savings via a stablecoin. Crone's estimate for a 1% shift from the highest to lowest tender would be $783 million for Walmart.

"Stablecoins could be used as part of the ongoing challenge on the payment acceptance side regarding interchange pricing (as part of the negotiation toolset of retailers/merchants), as well as to reduce the cost of funding for the wallet or 'Super App' of some providers," Christophe Uzureau, vice president and analyst at Gartner, told American Banker.

Uber

Uber CEO Dara Khosrowshahi in June told the Bloomberg Technology Summit that stablecions or other digital assets could reduce payment inefficiencies.

That could lead the ride-sharing app to issue its own stablecoin to smooth payment processing for rides or payments to and from drivers.

Uber has added financial services in the past, partnering with card firm Marqeta and Brazil's PIX payment rail, among others.