Amazon Eyes Launch of Proprietary Stablecoin to Revolutionize E-Commerce Payments
New Stablecoin
In a bold move that could reshape the landscape of digital payments, e-commerce giant Amazon is reportedly considering the development and issuance of its own stablecoin [1], a cryptocurrency pegged to the U.S. dollar designed for use on blockchain networks. This initiative comes amid growing interest from major retailers in leveraging blockchain technology to streamline transactions, reduce costs, and bypass traditional banking fees.
According to sources familiar with the matter, Amazon's exploration of a stablecoin is part of a broader strategy to integrate cryptocurrency into its vast ecosystem, which includes online shopping, cloud services via AWS, and global logistics. The company aims to create a digital token that maintains a stable value, backed by reserves of fiat currency, allowing for faster settlement times and lower transaction fees compared to credit cards or bank transfers. This could potentially save Amazon billions in payment processing costs annually, as the retailer currently pays substantial fees to financial intermediaries.
The push toward stablecoins has gained momentum following the advancement of regulatory frameworks in the United States. Earlier this year, the Senate progressed on the GENIUS Act, a bill aimed at providing clearer guidelines for stablecoin issuance and oversight. Experts suggest that such legislation could pave the way for non-bank entities like Amazon to enter the stablecoin market without the regulatory hurdles that have previously deterred large corporations. "Private blockchains may appeal to companies for stablecoin operations, but hurdles remain," noted a recent analysis, highlighting the balance between innovation and compliance.
Background on Amazon and Its Market Dominance
Amazon, founded in 1994 by Jeff Bezos, has grown from an online bookstore to a global powerhouse in e-commerce, cloud computing, and digital services. Headquartered in Seattle, Washington, the company operates in over 100 countries, serving millions of customers daily through its online marketplace, Amazon Prime, and Amazon Web Services (AWS). In 2024, Amazon reported net sales of approximately $575 billion [3], a significant increase from $514 billion in 2022, driven by its retail operations, subscription services, and cloud computing dominance. With 240 million Prime members [4] worldwide and AWS holding a 31% share of the global cloud market, Amazon’s scale provides a unique platform to integrate innovative financial solutions like a stablecoin.
How a Stablecoin Could Lower Fees and Drive Business
Amazon’s exploration of a stablecoin is part of a broader strategy to integrate cryptocurrency into its vast ecosystem, which includes online shopping, cloud services via AWS, and global logistics. A proprietary stablecoin, backed by fiat currency reserves, could significantly reduce transaction costs. Currently, Amazon pays billions annually in credit card processing fees, which typically range from 1.5% to 3.5% per transaction. By using a blockchain-based stablecoin, Amazon could bypass these intermediaries, enabling near-instantaneous settlements at a fraction of the cost—potentially saving up to $10 billion annually based on its sales volume.
Beyond cost savings, a stablecoin could attract new customers and drive business growth. By offering a seamless, low-cost payment option, Amazon could appeal to crypto-savvy consumers and international shoppers facing high cross-border transaction fees. Integration with loyalty programs, such as Prime, could incentivize adoption through discounts or rewards, further boosting customer retention. Additionally, AWS’s blockchain services could facilitate stablecoin transactions for third-party merchants, expanding Amazon’s influence in the decentralized finance (DeFi) space and potentially capturing a share of the $280 billion global stablecoin market. This move could also position Amazon to compete with payment giants like PayPal and Stripe, enhancing its ecosystem’s stickiness and attracting new business partners.
Walmart and Others
Amazon is not alone in this endeavor; retail rival Walmart is also delving into similar plans, signaling a potential shift in how consumer payments are handled across the industry. Both companies are eyeing stablecoins to enhance customer loyalty programs, enable seamless cross-border payments, and tap into the decentralized finance (DeFi) space. For Amazon, this could extend to integrating the stablecoin with its Prime membership perks or even AWS blockchain services, further solidifying its dominance in tech and retail. This also follows others such as Uber showing an interest in a stablecoin [2].
Reactions
Critics, however, warn of potential risks, including regulatory scrutiny, cybersecurity threats, and the concentration of financial power in the hands of tech behemoths. Stablecoins have faced volatility in the past, with incidents like the 2022 collapse of TerraUSD underscoring the need for robust backing and oversight. Proponents argue that corporate-backed stablecoins from trusted brands like Amazon could bring stability and mainstream adoption to the crypto world.
Press Statements
As of now, Amazon has not publicly confirmed these plans, and representatives declined to comment when approached. Industry watchers will be closely monitoring developments, especially as the GENIUS Act moves toward potential enactment. If realized, Amazon's stablecoin could mark a significant milestone in the convergence of e-commerce and blockchain technology, potentially influencing how billions of dollars in daily transactions are conducted worldwide.