Core Insights - The core argument is that stablecoins can provide low-cost, low-risk funding sources for retail giants like Walmart, JD.com, and Amazon, potentially transforming their business models and profit structures [1][25]. Group 1: Profitability and Stablecoins - The profit margin of Meituan's core local business is approximately 4%, which aligns with the current yield on US Treasury bonds, indicating that stablecoins could offer significant financial benefits [2][5]. - Walmart's net profit margin for fiscal year 2024 is only 2.39%, while JD.com and Amazon have margins of 3.6% and around 5%, respectively, highlighting the potential for stablecoins to enhance profitability for low-margin businesses [2][10]. - Retail companies are actively exploring stablecoin issuance, with the potential to generate substantial interest income, which could become a significant revenue stream [3][11]. Group 2: Market Potential and Issuance - Retailers like Walmart and Amazon are well-positioned to issue stablecoins due to their high transaction volumes and low profit margins, making the financial benefits of stablecoins more pronounced [11][19]. - If Walmart were to issue stablecoins equivalent to 5% of its annual revenue, it could potentially accumulate around $400 billion in stablecoin reserves, leading to significant interest income [14][16]. - The ability to replace traditional payment systems with stablecoins could save retailers substantial transaction fees, further enhancing their profitability [16][19]. Group 3: Financial Structure and Risk - Stablecoins offer a unique financing model that does not require interest payments, allowing companies to invest in low-risk assets like US Treasury bonds, which can provide stable returns [22][24]. - The low-risk nature of stablecoins could protect companies from financial crises, as they can maintain liquidity even during market downturns [23][24]. - The potential for stablecoins to act as a financial tool for retailers could lead to a paradigm shift in their business models, allowing them to generate profits through financial services rather than just product sales [19][25].