There have been rumors that Amazon and Walmart, two behemoths are internally developing their own stable-coins. This makes perfect sense given the traction stablecoins have been receiving in recent times.

The reason for such move could be that both retail giants want to familiarize themselves with the space and be ready if the stablecoin revolution is around the corner. It does not necessarily mean they will actually launch them in recent future. They are building technical capacity for stable coins.

But why the stable coins ?

The biggest benefit of stable coins is that they can bypass the visa and mastercard fees and also recover money through fraudulent transactions. When a company issues you a stable coin, it is supposed to keep an equivalent of USD in the bank. The money earns interest which the stablecoin purchased by user does not (in most cases). This means larger the stable coin usage, higher the income Amazon and Walmart will have from those deposits in the bank.

It also means that everyone is sort of locked in into that currency. Amazon Merchants might receive stablecoins too which they might have to convert to USD if they want to cash out but there is a good chance Amazon might partner with various institutions to avoid the need to cashout.

It remains to be seen how this space would evolve.

Some of the biggest merchants are exploring how to issue or use stablecoins, potentially shifting the high volumes of cash and card transactions that they handle outside the traditional financial system and saving them billions of dollars in fees.

Walmart WMT 1.08%increase; green up pointing triangle, Amazon AMZN -1.33%decrease; red down pointing triangle.com and other multinational giants have recently explored whether to issue their own stablecoins in the U.S., according to people familiar with the matter.

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