Latest news with #StateofCryptoSummit
Yahoo
a day ago
- Business
- Yahoo
Amazon Wants to Launch Its Own Stablecoin. Should You Buy AMZN Stock Here?
The cryptocurrency landscape is heating up in 2025, driven in large part by President Donald Trump's public embrace of Bitcoin (BTCUSD) and crypto-friendly policies, as well as the recent blockbuster IPO of stablecoin issuer Circle Internet Group (CRCL). Amid this shifting backdrop, stablecoins — cryptocurrencies whose value is pegged to stable assets, typically the U.S. dollar — have caught the attention of global giants seeking to streamline their payment processes and significantly reduce transaction fees. Amazon (AMZN), one of the world's largest e-commerce and cloud computing companies, is reportedly exploring its own entry into this space by launching a stablecoin for online transactions. This move could have enormous implications, potentially allowing Amazon to sidestep billions in fees currently paid to credit card networks and banks, while simultaneously creating an entirely new profit stream through earned interest on customer funds held in stablecoins. Dear Tesla Stock Fans, Mark Your Calendars for June 30 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio This Options Tool Can Show You How to Trade Tesla Stock Ahead of Robotaxi Day Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. But how realistic is this scenario, and what could it mean for Amazon investors? In this article, we'll examine the potential impact of Amazon issuing its own stablecoin, evaluate the risks and opportunities involved, and determine whether now is the right time for investors to buy AMZN stock. Let's dive in! Amazon (AMZN) is a global leader in e-commerce and cloud computing. The company operates a diverse business model, encompassing retail sales of consumer products through its online and physical stores, cloud services through AWS, and advertising and subscription offerings. AMZN currently has a market cap of $2.26 trillion. Shares of the e-commerce and cloud services giant are down just 4.2% on a year-to-date basis. AMZN stock has had a turbulent ride this year. After climbing above $240 in February, the stock dropped more than 30% to just under $170 by early April, largely due to Trump's aggressive tariff agenda. However, as Trump paused or lowered the majority of his levies, the stock began trending upward, forming higher highs and higher lows, and most recently holding near the $210 support level. AMZN stock remains highly sensitive to tariff headlines, which is unsurprising given its massive e-commerce business, where tariffs can squeeze both revenue and profit margins. The crypto environment is heating up in 2025 amid Trump's pro-crypto stance. Trump said he's proud to be regarded as the first 'crypto president' during a pre-recorded address at Coinbase's State of Crypto Summit last week. Trump's enthusiastic embrace of crypto became evident last summer at a Bitcoin conference, where he vowed to make the U.S. the 'crypto capital of the world' — a notable reversal from his 2021 stance, when he dismissed Bitcoin as a 'scam.' The shift helped his campaign, drawing in millions of dollars in donations from the crypto industry. In March, Trump delivered on one of his campaign promises by signing an executive order to establish a U.S. strategic Bitcoin reserve. On Tuesday, the Senate passed the GENIUS Act, a landmark bill that, for the first time, sets federal guidelines for U.S. dollar-pegged stablecoins and establishes a regulated framework allowing private companies to issue digital dollars with federal approval. The bill still faces hurdles in the Republican-controlled House, but its passage in the Senate marks a pivotal moment, reinforcing a more favorable environment for crypto in the U.S. Trump earlier stated that once the Genius Act is passed, he intends to create 'clear and simple market frameworks that will allow America to dominate the future of crypto and bitcoin.' Meanwhile, Trump and his family have actively ventured into the cryptocurrency space, making moves into stablecoins, Bitcoin mining, and even launching a memecoin. For example, Trump launched his own memecoin and a U.S. dollar-pegged stablecoin through his family's World Liberty Financial project. Also, Trump's sons, Eric and Donald Jr., are behind a crypto mining venture, American Bitcoin, which intends to list on the Nasdaq and aims to become one of the world's largest and most efficient Bitcoin mining operations based in the U.S. It's also worth mentioning the recent high-profile initial public offering (IPO) of Circle Internet Group (CRCL), the company behind one of the world's largest stablecoins, USDC. The company's IPO surpassed all expectations, pricing above an increased range and attracting more than 20 times the number of available shares in orders, according to Bloomberg News. Circle's $1.1 billion IPO stands out as the most prominent crypto debut since Coinbase Global's direct listing in 2021 and reflects the increasingly favorable climate for crypto in the U.S. The momentum surrounding the GENIUS Act has reignited interest in stablecoins. Last Friday, the Wall Street Journal reported that some of the largest U.S. merchants are exploring the use or issuance of stablecoins, potentially moving a significant volume of cash and card transactions outside the traditional financial system. According to the report, Amazon, Walmart (WMT), and other multinational giants have recently considered issuing their own stablecoins in the U.S. The move could potentially cut the billions of dollars retail giants spend on credit transaction fees. For context, stablecoins are a type of cryptocurrency, running on a blockchain, that are typically pegged to a stable asset, most commonly the U.S. dollar. They are also backed by cash and cash-equivalent assets, such as U.S. Treasuries. This aims to avoid the volatility commonly seen in cryptocurrencies like Bitcoin. Stablecoins are the latest opportunity in big retail's long-running effort to eliminate billions in costs and days of delays associated with payment transactions. It's important to note that credit and debit card payments come with interchange fees — charges merchants pay to the card issuer for processing transactions. For instance, Mizuho estimated that Walmart pays just under 2% in interchange fees on card-based transactions, amounting to billions in annual costs. With that, using stablecoins for payments would undoubtedly benefit retailers like Amazon by boosting their margins and profits. Retailers are exploring two potential ways to implement stablecoins, according to the WSJ, which outlined Walmart and Amazon's plans. They could either begin accepting existing stablecoins, like Tether's USDT, Circle's USDC, or PayPal's (PYPL) PYUSD, or issue their own — either individually or collaboratively. If retailers issued their own stablecoins, it could open up an entirely new source of profit. Similar to current issuers, they would retain the interest earned on all funds deposited to purchase their stablecoins. Meanwhile, Amazon remains in the early phases of exploring stablecoin options, a source told the WSJ. Some of the discussion has centered on the possibility of Amazon issuing its own stablecoin for online transactions. It's also worth noting that any efforts by Amazon, Walmart, and other global retailers to launch their own blockchain-based payment systems could pose a threat to credit card issuers and the broader banking industry. Card companies like Visa (V) and Mastercard (MA) would simply lose out on interchange fees, directly affecting their revenues. However, since banks that issue the cards receive the bulk of the card fees, they would be affected as well. Moreover, money held in retail stablecoins or various apps is money that banks no longer have available to issue loans and generate profits. Another interesting point is that retailers may struggle to persuade consumers to adopt stablecoins unless they offer some form of incentive. According to Mizuho Securities analyst Dan Dolev, if those incentives become too costly, they could outweigh any interchange fee savings for the retailer. Also, analysts at Keefe, Bruyette & Woods noted that merchants have previously tried to launch their own payment systems, such as mobile wallets, but these efforts have struggled to gain traction. Wall Street analysts are highly optimistic about Amazon. Of the 53 analysts covering the stock, 45 rate it a 'Strong Buy,' six assign a 'Moderate Buy' rating, and just two recommend holding. This translates to a consensus rating of 'Strong Buy.' The mean price target for AMZN stock is $241.73, implying 14.7% upside from current levels. Analysts tracking the company foresee a 12.15% year-over-year increase in its GAAP EPS to $6.20 for fiscal 2025, with revenue expected to grow 8.94% year-over-year to $694.99 billion. Amazon's leadership in cloud computing and e-commerce retail positions the company well for long-term growth. The company continues to invest heavily in AI and cloud infrastructure, which is expected to support its long-term growth. With a forward earnings multiple of 34.5x, I consider AMZN's valuation to be more than justified. It might seem high if you see Amazon solely as a retailer, but it's reasonable given the strength of its cloud and AI business. The potential launch of its own stablecoin for online transactions could be a big win for Amazon. In theory, it could cut billions in costs while creating an entirely new profit stream, enabling Amazon to earn interest on all funds deposited to buy its stablecoin. However, it's also important to note that encouraging consumers to adopt stablecoins may prove challenging and would likely require offering some sort of incentive. If those incentives become too expensive, they could offset any potential benefits from switching to stablecoin payments. Given that all of this is still in its early stages, I don't believe it yet forms a solid investment thesis for AMZN. However, it doesn't change the fact that AMZN remains a high-quality stock with strong long-term growth potential. I believe this member of the Magnificent Seven belongs in every investor's portfolio, and for me, the best strategy is to take advantage of any dips in its stock price. On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
CNBC
14-06-2025
- Business
- CNBC
Bitcoin becoming 'more central' to portfolios as its volatility cools, Coatue's Philippe Laffont says
While investors may have been put off by bitcoin's volatility in its early years, a few factors are emerging that will make the flagship crypto a key part of a portfolio, according to Coatue Management's Philippe Laffont. The founder of the tech-focused hedge fund spoke Thursday at Coinbase's State of Crypto Summit in New York City. For starters, while bitcoin has managed to surge nearly 13% in 2025, Laffont said that the cryptocurrency's volatility has come down over time. Bitcoin's dramatic price swings have been a deterrent for potential investors in the crypto – and at one point, this volatility kept Coatue from getting into bitcoin, he said. "It's intriguing to me that maybe … the cost of getting into bitcoin is shrinking," Laffont said on stage Thursday at Coinbase's State of Crypto Summit in New York City. "If the beta shrinks, that would be very interesting." Beta is a measurement of an asset's volatility compared to the that of the market. Institutional investors' move to embrace bitcoin was also a sign of maturity for the cryptocurrency, he said. Consider that BlackRock was one of the leaders of the charge to bring bitcoin ETFs to market. Further, Laffont pointed out bitcoin's performance in 2022 and how it has changed over time. The flagship cryptocurrency fell more than 60% in 2022, while the Nasdaq Composite dropped 33%. In contrast, from April 2 to April 10 — the days following the announcement of President Donald Trump's tariffs — bitcoin retreated about 5% and the Nasdaq fell more than 6%. Additionally, the number of bitcoin wallets that have held the crypto for at least a month and sell their full position has come down "a lot," Laffont said, which suggests investors are holding onto the crypto for the long term rather than trading it. Bitcoin accounts for a small amount of the world's net worth – about $2 trillion out of $500 trillion, he said. If one assumes bitcoin will continue to grow and be seen as valuable by more people, then it "has to become more central" to a portfolio, Laffont said. Coatue has invested in private and public crypto companies like data provider Dune Analytics, bitcoin miner Hut 8 and artificial intelligence play CoreWeave. The latter company has a partnership with bitcoin miner Core Scientific. The bitcoin opportunity wasn't immediately clear to Laffont, however. "Every night, I wake up at about three in the morning and I go, 'What an idiot. Why didn't I invest more in bitcoin?'" he said. Laffont described his investment philosophy as one that emphasizes the importance of simple, "obvious" ideas over "complicated" ones. While crypto market participants have deliberated over the use cases and potential of the cryptocurrency for years, Laffont said he overlooked the simplest aspect of all. "That … as long as other people think it's valuable, it gets more valuable over time – and that's what we missed," he said. "Now I go back and I say, this is crazy – why wouldn't everyone have one or two or 3% or 4% of your assets in something like bitcoin that … protects you against inflation?" Laffont identified three cohorts of his client base: those who are hands off and leave the investing to him, those wondering "why did you miss one of the biggest trends in the world," and the risk-averse ones who feel comfortable "as long as you don't dabble in crypto." The latter "is the dying population," Laffont said. "Every year there's a little bit less of them. That's the spectrum that you get from institutional investors. Hopefully, we see that distribution continue to change." While Laffont has become more of a bitcoin enthusiast than he used to be, he still told summit attendees not to get carried away and to approach the cryptocurrency with basic investing principles. "For those of you that think bitcoin is going to be important, my recommendation is never make it such a big portion of your portfolio that it becomes the driving factor of the portfolio," he said. "You're going to make way more money by having a smaller position that you can keep for 10 years than the big one that worries you all the time."
CNBC
13-06-2025
- Business
- CNBC
Bitcoin and ether fall as tensions between Israel and Iran intensify: CNBC Crypto World
On today's episode of CNBC Crypto World, cryptocurrencies fall as tensions grow between Israel and Iran. Plus, Max Branzburg of Coinbase speaks to Crypto World from the State of Crypto Summit to break down the crypto exchange's new credit card in partnership with American Express.
Time of India
13-06-2025
- Business
- Time of India
Coinbase to launch CFTC-compliant perpetual futures trading in US
Live Events -Coinbase plans to launch perpetual futures trading in the United States, with the offering set to comply with regulatory standards outlined by the Commodity Futures Trading Commission, a top executive at the crypto exchange said on crypto markets buoyed by hopes of lighter regulation and a renewed risk appetite, exchanges are racing to capitalize on the frenzy by rolling out complex products that were once used primarily by seasoned traders."We recently launched first-of-its-kind 24/7 futures trading, and I'm excited to share that we'll soon be launching CFTC-compliant perpetual futures trading in the U.S. as well," Max Branzburg, Coinbase 's vice-president of product, said at the State of Crypto Summit in New futures are crypto derivatives that allow traders to bet on token prices without an expiry date and offer round-the-clock access and high leverage, making them a popular choice in fast-moving and traders typically use derivatives to hedge risk, amplify returns, or speculate on price movements without owning the underlying asset.
Yahoo
13-06-2025
- Business
- Yahoo
Coinbase to Launch Bitcoin Rewards Card With Amex, While Eyeing U.S. Futures Expansion
Crypto exchange Coinbase is planning to launch a credit card that offers bitcoin BTC cashback, the company said on Thursday. The Coinbase One Card, issued in partnership with American Express, includes perks such as earning 4% in BTC after purchases, boosted rewards on USDC stablecoin holdings and higher staking rewards and transaction credits on Base, the Ethereum layer-2 network developed by the exchange, according to the card's website. The card's rollout is expected this fall. The move comes as more crypto platforms and exchanges are rolling out payment cards to enable users to spend their blockchain-based token stash on everyday purchases. For example, self-custodial wallet MetaMask introduced its debit card last year, while Mastercard unveiled plans in April to launch debit cards with crypto exchanges OKX and Kraken. It's also not the first crypto endeavour for Amex, either: the company issued a credit card offering crypto rewards with Abra in 2022. Coinbase's announcement coincided with the company's State of Crypto Summit event in New York, where the exchange also hinted at expanding perpetual futures trading to the U.S., according to media reports. Perps trading has been limited to non-U.S. users at Coinbase Advance. However, the exchange said earlier this year in a blog post that it was working with the Commodity Futures Trading Commission (CFTC) towards making "perpetual-style futures contracts" accessible to U.S. users. Sign in to access your portfolio
