The recent stablecoin legislation in the U.S. may result in significant annual cost savings for retailers that create their own digital currencies.
In July 2025, President Trump enacted the bipartisan Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, making the U.S. the first country to establish a regulatory framework for secure, fiat-backed digital currencies.
“This bill will strengthen the dominance of the U.S. dollar, safeguard consumers, boost demand for U.S. treasuries, and ensure that digital asset innovation remains within the U.S.,” stated Senator Bill Hagerty (R-TN), the lead sponsor of the bill.
The GENIUS Act mandates that any banks or businesses issuing stablecoins must back each digital dollar with an equivalent dollar in cash or U.S. Treasury bonds, ensuring the stability of these digital assets.
Retail Stablecoin
One potential application for the governed stablecoins is issuance by retailers.
Companies like Walmart and Amazon are likely exploring this option as a means to reduce payment processing costs.
Payment card transactions usually incur fees ranging from 1% to 3%, which can quickly accumulate for large retailers.
Issuing their own stablecoins could allow these giants to circumvent traditional payment networks and minimize transaction fees almost to zero, potentially saving billions annually. Retailers reportedly spend around $160 billion each year on payment card fees.
Stablecoin Benefits
Besides the savings on transaction costs, issuing a stablecoin can offer numerous benefits for large retailers, including enhanced cash flow from instant settlements, reduced fraud risk, and increased customer loyalty through a branded digital currency.
However, some are reminded of the TerraUSD incident, a “stable” coin that fell below its one-dollar peg in May 2022.
It was an “algorithmic” stablecoin that relied on its connection to another cryptocurrency, Luna, to maintain stability.
Secure Coins
In contrast, stablecoins established under the GENIUS Act will be fundamentally reliable, backed by equivalent cash or Treasury bonds, making them markedly different from algorithmic or crypto-backed alternatives.
Not for SMBs
While stablecoins have the potential to revolutionize ecommerce and retail, small and medium-sized businesses may see limited benefits in the short term.
Stablecoins can facilitate cross-border transactions, but ecommerce platforms and marketplaces may not extend per-transaction savings to sellers.
For instance, when Shopify began supporting USD Coin (USDC) in June 2025, it maintained stablecoin transaction fees similar to standard credit card processing, despite the inherent cost advantages of USDC transactions.
Concerns
There are two additional concerns: first, retailers that create their stablecoin will encounter rigorous banking regulations and reporting requirements.
Second, some economists fear that widespread use of “private” money could lead to market disruptions, particularly if consumers start using stablecoins for daily purchases.
Regardless, government-regulated stablecoins are now a reality and will have implications for both in-store and online retailers.
