Mastercard inc. ( MA ) shares are trading lower Friday following a WSJ report suggesting major retailers like Walmart and Amazon are exploring the creation of their own stablecoins.

What To Know: The move could signal a significant threat to the traditional payments infrastructure, including Mastercard ( MA ) and Visa, which currently dominate credit and debit card transactions across the U.S.

According to The Wall Street Journal, citing sources familiar with the matter, both Walmart and Amazon have been in discussions about launching digital tokens tied to the U.S. dollar. Stablecoins offer the potential for near-instant settlement and could reduce or eliminate billions in card processing fees that merchants pay annually. This development, if realized, could bypass existing payment networks entirely, severely undercutting Mastercard's ( MA ) role in the transaction process.

Retailers are also considering partnering with existing stablecoin issuers or forming a consortium to issue coins jointly, further accelerating the shift. However, these efforts depend heavily on the passage of the Genius Act, a proposed federal law that would regulate stablecoin usage and issuance. The bill recently advanced in Congress but still requires full approval.

The news underscores a growing interest among large corporations in disrupting traditional banking and payments systems. Mastercard ( MA ), long considered a secure bet in the financial sector, faces renewed pressure to defend its position amid rising competition from digital alternatives.

MA Price Action: Mastercard ( MA ) shares were down 4.63% at $561.99 at the time of writing, according to Benzinga Pro.

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