Walmart (WMT) and Amazon (AMZN) are looking into the possibility of launching their own stablecoins in the United States, as reported by the Wall Street Journal.

These digital tokens, pegged to the U.S. dollar or other government-backed currencies, could significantly cut merchant fees and speed up payment processing, posing a challenge to traditional financial institutions.

Key Highlights:

• Stablecoins may help eliminate high card processing fees and expedite transaction times, particularly in international payments.
• A stablecoin initiative from either Walmart or Amazon could redirect consumer transactions from banks, putting more pressure on card networks like Visa and Mastercard.

The plan depends on the approval of the Genius Act, a proposed regulatory framework for stablecoins that has passed critical stages in Congress. If enacted, this legislation could facilitate major companies in adopting or launching stablecoins to enhance existing payment systems.

Both Walmart and Amazon are still in the early phases of exploring private coins or potential partnerships with third-party stablecoin providers.

Walmart has long been interested in entering the financial services arena and is currently advocating for amendments that would boost competition among credit card providers.

Both companies did not provide immediate comments on the matter at the time of publishing.