Stablecoins Are Coming for the Middlemen
If you’ve never heard of stablecoins, you’re not alone—but if you’ve ever paid a bank fee, tapped your card at a checkout, or wondered why sending money takes days, then stablecoins matter to you. Quietly, they’re on the verge of disrupting how money moves, and the gatekeepers of today’s payment system—like Fiserv, Visa, and Mastercard—are watching with concern.
Let’s break this down.
What Are “Payment Rails,” Anyway?
First, understand the term “rail.” A payment rail is the infrastructure—the track—that money travels on when it moves from one party to another. The traditional rails? ACH transfers, SWIFT wire systems, debit/credit card networks, and clearinghouses that process every swipe, tap, or online payment. These rails are slow, expensive, and deeply intertwined with legacy banking systems.
Fiserv, Visa, Mastercard, and others own or control large chunks of these rails. Every time a payment moves, they’re either charging a fee or validating the flow of funds—usually both. They’re the tollbooths on the highway of money.
Enter Stablecoins
A stablecoin is a type of cryptocurrency pegged to something stable—most commonly, the U.S. dollar. Unlike Bitcoin or Ethereum, stablecoins don’t swing wildly in value. Instead, they’re designed to provide the trust of a dollar with the speed of blockchain.
Stablecoins ride on new rails—blockchains like Ethereum or Solana. These rails don’t sleep, don’t close on holidays, and don’t need a bank to approve your transaction. In a world of stablecoins, money doesn’t just move faster—it moves smarter.
You can send a USDC payment from New York to Nigeria in seconds. No bank delays. No $40 wire fee. No middlemen. And no 3-day wait.
So… Who Cares?
Let’s ask: Who benefits most from the fees and friction in today’s system?
The answer: banks and payment processors. Companies like Fiserv (which powers back-end systems for countless banks), along with Visa and Mastercard (which collect up to 3% per transaction), are middlemen with billion-dollar business models based on every transaction you make.
Now imagine a world where a retailer doesn’t need them anymore.
The Amazon and Walmart Factor
Here’s where things get interesting. Both Amazon and Walmart have explored launching their own digital currencies or stablecoins. Walmart filed a patent for a digital currency system that could serve the unbanked and lower fees. Amazon has quietly hired blockchain experts and registered crypto-related domains.
Why?
Because stablecoins let them cut out Visa, Mastercard, and traditional processors entirely.
Picture this: You pay for your Prime Day order in “AmazonCoin.” The transaction settles instantly. There’s no credit card fee. Amazon keeps more of the sale. Maybe they pass the savings on to you—or reward you with discounts for using their coin.
Same goes for Walmart. With razor-thin margins, shaving 2–3% off every card transaction by using a Walmart-issued stablecoin could be worth billions. And for customers, it could mean faster refunds, instant payments, and loyalty perks baked into the coin itself.
These aren’t just theoretical ideas. They’re blueprints, and the tech is ready.
Congress Is Paying Attention: The GENIUS Act
Washington, surprisingly, is not entirely behind the curve on this.
The proposed GENIUS Act (short for Generating Encryption and New Infrastructure for the U.S.) is a bipartisan bill aimed at clarifying the rules and protections around stablecoins. It doesn’t regulate stablecoins out of existence—it recognizes their potential and proposes a regulatory framework that encourages innovation, while protecting consumers from fly-by-night scams.
The GENIUS Act supports transparency, mandates backing reserves for dollar-pegged coins, and could give banks and fintech firms the green light to issue regulated stablecoins under clear guidelines.
In other words: stablecoins aren’t being ignored—they’re being absorbed, potentially turning from a fringe idea into mainstream financial plumbing.
What About Yield?
Here’s where it gets even juicier.
Banks are currently offering 0.01% on savings. Meanwhile, bank platforms exist to offer stablecoin-based yield products where investors can earn hypothetical 6–10% APY on stablecoins like USDC. These aren’t wild crypto bets—these are regulated, asset-backed digital dollars that generate passive income by lending into short-term, low-risk markets.- No FDIC here though to be sure.
If given the choice between keeping cash in a savings account or earning 10% in a regulated stablecoin—how many people will stick with the bank?
Where This Leaves Fiserv and Friends
Not in a great spot.
Fiserv and similar firms depend on legacy infrastructure—the need to verify, batch, settle, and record transactions in a closed, permissioned system. But stablecoins operate in open, permissionless environments. They don’t wait for a banker in a cubicle to approve your funds. They don’t shut down at 5 p.m.
And they don’t need to charge $35 for a wire transfer.
In a stablecoin-powered economy, Fiserv becomes optional. That’s the risk.
But Let’s Be Real…
Not everything is perfect. Algorithmic stablecoins (like the failed Terra/LUNA system) have shown us what happens when there’s no real backing. And crypto platforms, even well-meaning ones, still face cybersecurity risks and evolving regulations.
But the big players—like Circle, PayPal, and eventually, major banks—are building regulated, fully-reserved stablecoins. That’s different. That’s the future of money with safety and speed.
Final Thought
Stablecoins won’t just replace dollars—they’ll replace how dollars move. That’s why Visa, Mastercard, and Fiserv are paying attention. It’s why Amazon and Walmart are experimenting. And it’s why the GENIUS Act might be one of the most important financial bills of the decade.
Money is becoming software. And like any good upgrade, it’s faster, cheaper, and smarter—leaving the old rails behind.
The real question is: Will your next paycheck ride the same rails as your grandparents’—or take the express route on the blockchain?
Sources:
Stablecoins as payment systems –
https://www.atlanticcouncil.org/cbdctracker/, https://www2.deloitte.com/us/en/insights/industry/financial-services/future-of-payments.html
Payment Rails –
https://www.investopedia.com/terms/p/payment-rails.asp
https://www.newyorkfed.org/aboutthefed/fedpoint/fed27.html
Amazon and Walmart payment intermediaries – https://www.pymnts.com/
The Genius Act - https://www.congress.gov/bill/118th-congress/house-bill/GENIUS
Evan R. Guido is the Founder of Aksala Wealth Advisors LLC, a 2018 Forbes Next-Gen Advisors List Member, and Financial Professional at Avantax Investment ServicesSM. Evan heads a team of retirement transition strategists for clients who consider themselves the “Millionaire Next Door.” He can be reached at 941-500-5122 or eguido@aksalawealth.com. Read more of his insights at https://finance.heraldtribune.com/category/ask-guido/. Securities offered through Avantax Investment ServicesSM, Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory ServicesSM, Insurance services offered through an Avantax affiliated insurance agency. 6260 Lake Osprey Dr. Lakewood Ranch, FL 34240. The views and opinions presented in this article are those of Evan R. Guido and not of Avantax Wealth Management® or its subsidiaries. These opinions are based on Evan R. Guido observations and research and are not intended to predict or depict performance of any investment. These views are as of the close of business on 6/25/2025 and are subject to change based on subsequent developments. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. These views should not be construed as a recommendation to buy or sell any securities. Past performance does not guarantee future results. The S&P 500 is an index of 500 major, large-cap U.S. corporations. Standard & Poor's is a corporation that rates stocks and corporate and municipal bonds according to risk profiles. You cannot invest directly in an index. An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. CDs are FDIC insured and offer a fixed rate of return. They do not necessarily protect against a rising cost of living. The FDIC insurance on CDs applies in case of insolvency of the bank, but does not protect market value. Other investments are not insured, and their principal and yield may fluctuate with market conditions. Investments are subject to market risks including the potential loss of principal invested. Neither diversification nor asset allocation assure or guarantee better performance and cannot eliminate the risk of investment losses. This information is intended to be educational and does not reflect any particular investment or investment needs of any specific investor. Aksala Wealth Advisors, LLC is not a registered broker/dealer or Registered Investment Advisory firm. Aksala Wealth Advisors, LLC and Avantax are not affiliated.