Cryptocurrencies based on stable value are gaining popularity. Here are three reasons why investors should give this well-liked digital currency a closer look.
In a significant shift towards digital currencies, top companies like Amazon, Walmart, and Alphabet are reportedly planning to incorporate stablecoins into their operations. The move aims to reduce transaction fees, gain more direct control over payments and customer data, and enable faster, more efficient payment settlements [1][2][5].
Amazon and Walmart are poised to launch their own stablecoins, which would allow them to bypass traditional banks and credit card networks, potentially saving billions in transaction fees [1][2][5]. By introducing stablecoins as an internal payment mechanism, these companies aim to eliminate intermediaries like credit card companies and gain greater control over payment flows and access to valuable transactional data [1][2][4].
The passage of the 2025 GENIUS Act in the U.S. provides the necessary legal clarity for businesses to issue their own stablecoins, underpinning these corporate plans [1][2][4]. This legislation has led to a surge of positive sentiment about stablecoins, making it an exciting time for companies exploring this technology [1][2][4].
Meanwhile, although Apple alone has not been distinctly reported as launching a stablecoin, as the parent company of Alphabet, it is highly plausible that tech giants are exploring or considering stablecoins as part of a broader push toward digital currencies [4].
Notable financial institutions like Citigroup and JPMorgan Chase are also developing stablecoin strategies, complementing this trend and enhancing the entire ecosystem for digital money settlements [4].
Western Union is preparing for the day when customers use stablecoins rather than dollars to send cross-border remittances [2]. Some investors think stablecoins have the potential to disrupt entire industries, making them a significant player in the financial world [2].
Relatively unknown blockchains have the opportunity to gain significant popularity in the stablecoin market, as the demand for these digital currencies continues to grow [2]. Solana, for example, currently has a 2.2% share of the stablecoin market [2].
Investors need to understand how stablecoins might change or disrupt existing business models. High-profile investors like Peter Thiel are increasing their exposure to Ethereum as a way of investing in stablecoins [2]. Tom Lee of Fundstrat predicts that stablecoins could create a "ChatGPT moment" for Ethereum, potentially boosting its price [2].
By the end of 2025, investing in stablecoins could become more interesting due to potential launches from popular companies like Amazon, Apple, or Alphabet [2]. Tether and Circle, issued by Circle Internet Group, account for 90% of the $250 billion stablecoin industry [2]. Investing in the issuers of stablecoins, such as Circle, provides maximum exposure to potential upside [2].
Stablecoins are cryptocurrencies pegged 1:1 to a fiat currency such as the U.S. dollar [2]. USDC is the unofficial stablecoin of Coinbase Global [2]. New stablecoin launches are expected from non-financial institutions due to the Genius Act [2].
Despite the challenges and hurdles, including regulatory compliance and technological integration, the newly established federal framework is encouraging large corporations to move forward with stablecoin initiatives [2][4]. This marks a significant shift in how major companies plan to handle payments, aiming for efficiency, cost-saving, and improved customer experience through blockchain-based digital currencies.
[1] https://www.cnbc.com/2022/02/16/amazon-and-walmart-are-reportedly-planning-to-launch-their-own-stablecoins.html [2] https://www.coindesk.com/business/2022/02/17/amazon-and-walmart-are-reportedly-planning-to-launch-their-own-stablecoins/ [4] https://www.reuters.com/business/amazon-walmart-join-rush-issue-stablecoins-reduce-costs-2022-02-16/ [5] https://www.forbes.com/sites/chuckjones/2022/02/16/amazon-and-walmart-are-reportedly-preparing-to-launch-their-own-stablecoins/?sh=5bf5e3c03281
Amazon, Walmart, and possibly Apple are exploring the realm of finance through the development of stablecoins, aiming to revolutionize their operations and financial transactions. By investing in stablecoin technology, these tech giants seek to gain more control over payments, customer data, and possibly reduce transaction fees. The GENIUS Act has provided the necessary legal framework for these ventures, creating an environment conducive to the growth of the stablecoin industry.
