Walmart and Amazon ship a warning shot to bank card firms… watch the GENIUS Act… silver is now outpacing gold – the place it goes subsequent… a 100% winner for Eric Fry’s subscribers… a market tailwind from “Trump Accounts”?
There’s a probably main shakeup brewing within the monetary tech (fintech) house.
Over the previous week, each Walmart and Amazon have quietly signaled plans to discover launching their very own stablecoins.
To ensure we’re all on the identical web page, a stablecoin is a sort of cryptocurrency designed to keep up a constant worth – usually $1 – by holding money or cash-like property similar to Treasuries.
In contrast to unstable cryptos similar to Bitcoin, stablecoins keep pegged to the greenback, enabling real-time transfers with out worth surprises.
Now, why would Walmart and Amazon be excited by their very own stablecoins as a substitute of simply utilizing the U.S. greenback as normal?
Let’s go to our crypto professional Luke Lango. From this previous weekend’s Crypto Investor Community replace:
Stablecoins supply these giants a compelling purpose to leap into crypto: decrease transaction charges and quicker settlements.
Yearly, Amazon and Walmart fork over billions to card networks in interchange charges. By launching or accepting stablecoins — particularly dollar-backed ones — they’ll bypass the Visa/Mastercard mafia, reduce prices, and settle immediately, together with cross-border.
This isn’t only a funds innovation. It’s an financial incentive. It’s capitalist gravity pulling large enterprise towards crypto rails.
Constructing on Luke’s level, Walmart and Amazon collectively are estimated to spend round $14 billion yearly on card‑processing charges. Only a 1% cutback in these funds by way of stablecoins might translate into roughly $1 billion in revenue earlier than curiosity and taxes.
In the meantime, quicker settlement occasions – instantaneous, as a substitute of the standard days – would enhance money stream, particularly throughout worldwide provider chains.
A growth for retailers, but a bust for bank card firms?
If these tasks acquire traction, stablecoins might flip Walmart and Amazon into quasi‑monetary hubs. They might present the framework for launching new service ecosystems, locking in buyer loyalty, and boosting margins.
Mainly, these retail giants might undercut current fee ecosystems whereas retaining management of the person expertise.
It is a main risk to conventional credit-card networks. Plus, banks and fee processors might face pricing strain as retail giants shift to in‑home fee rails.
However you’ll be able to make sure that bank card firms and banks received’t go down with no struggle.
They might speed up their very own blockchain initiatives – like Visa’s USDC settlement pilot or Mastercard’s tokenization instruments. They might supply new providers like embedded lending, fraud safety, or loyalty incentives.
Most of all, I’d guess we’ll see a military of lobbyists push for regulatory frameworks that degree the enjoying discipline or sluggish adoption, particularly round compliance and custody necessities.
Talking of associated regulatory “frameworks,” preserve your eye on the GENIUS Act. Again to Luke for what that is and its significance:
The GENIUS Act, a bipartisan invoice establishing clear regulation for U.S. greenback stablecoins, handed a key Senate procedural vote 68-30. It requires full reserves, mandates transparency, and offers oversight to the Fed or state regulators.
If the invoice turns into legislation — and momentum is constructing — the U.S. could have a transparent framework for stablecoins. That’s the first step towards mainstream institutional crypto adoption.
Backside line: Hold this in your radar. If Walmart and Amazon efficiently proceed with this, it’ll rewrite the principles of cash and commerce.
Bullish on gold in the present day? Don’t overlook silver
As we’ve profiled right here within the Digest, gold has loved an explosive run in 2025, setting a collection of all-time highs.
In the meantime, for a lot of this yr, silver has been lagging, buying and selling at historic lows relative to gold.
For perspective on this lag, let’s look to the gold-to-silver worth ratio. It measures what number of ounces of silver are equal in worth to at least one ounce of gold.
Within the 20th century, the common clocked in at 47:1. From 2000-2020, this ratio bumped as much as roughly 60:1.
Now, just some months in the past, as gold surged whereas silver meandered sideways, this degree clocked in at practically 105 – the best degree of all time besides through the Covid disaster.
But since then, silver has finally begun to climb, outpacing its golden cousin. And as it appears today, silver could be starting its long-awaited catch-up rally.
Silver is on the move… and we’re still early in the move
As you can see below, since late May, silver has been crushing gold roughly 3-to-1.
But even after this move, we think it has plenty of room to run. To understand why, let’s revisit the gold-to-silver ratio.
As I write Tuesday, it’s at 91 – still elevated, but falling (bullish for silver). Importantly, this is happening because silver’s price is rising fast, not because gold’s price is falling.
So, what’s fueling silver’s momentum beyond technical mean reversion?
For one, supply constraints. According to the Silver Institute, global silver markets ran a deficit of roughly 117 million ounces in 2024 – the fifth straight year of undersupply. Most silver is produced as a by-product of mining other metals such as copper and zinc. That means higher prices won’t necessarily lead to more supply anytime soon.
Then there’s the industrial side.
Silver plays a critical role in solar panel production, which continues to grow rapidly. Throw in rising demand for electrification and high-tech components, and you have a metal that’s increasingly indispensable – yet still underpriced by historical standards.
Technically, the picture looks strong too.
Silver recently cleared resistance around $37 – its highest level since 2012.
Bottom line: After years of underperformance, silver is stepping back into the spotlight. This may be the early stages of a long-awaited “silver bull.”
If you’re looking for a one-click, easy way to play it, check out SLV, which is the iShares Silver Trust.
Bottom line: Given today’s backdrop of geopolitical instability, ballooning sovereign debt, and the ongoing erosion of fiat currency credibility, we think silver (and gold) have very bright futures from here.
Another metal on the move
As we’ve been profiling in the Digest, nuclear stocks have been getting lots of attention in recent weeks.
Microsoft, Alphabet, and Amazon have all recently announced deals to acquire more power through nuclear energy.
This has been a tailwind for select uranium stocks. And subscribers of our macro expert Eric Fry just cashed in.
Here’s Eric with yesterday’s Flash Alert in his trading service Leverage:
Since October 1, 2024, the day I beneficial [placing our uranium trade on the Global X Uranium ETF], the spot worth has slumped 15%.
Regardless of that drop, the value of our calls has doubled. Success of this kind doesn’t occur typically within the inventory market. Due to this fact, I like to recommend closing out the complete place for a acquire of barely greater than 100%.
First, a giant “congratulations” to Leverage subscribers. However what accounts for the worth of their calls climbing if spot uranium is falling?
Again to Eric:
Many of the uranium mining firms within the International X Uranium ETF portfolio are producing sturdy income development and anticipating extra of the identical. However at their present quotes, they’re discounting numerous excellent news that has not but arrived.
For instance, Cameco Corp. (CCJ), which represents 24% of URA’s portfolio, is buying and selling for a lofty 140 occasions earnings. Even when we flatter this evaluation through the use of this yr’s estimated consequence, the inventory is buying and selling for 68 occasions earnings.
That valuation is what the esteemed monetary author James Grant calls “priced for perfection.”
Eric factors out that this “perfection pricing” could also be fully acceptable, however he believes that erring on the aspect of warning is the wiser transfer. So, he beneficial subscribers ring that money register to the tune of a 100% return. Congrats once more.
To be taught extra about how Eric trades in Leverage, click here.
Lastly, searching for one more reason to remain invested? How about “Trump Accounts”?
Earlier this month, we dove right into a tax provision (Part 899) in President Trump’s “One Large Stunning Invoice Act” that would dent our portfolios.
Whereas we stay cautious of that clause, there’s a distinct a part of the invoice that’s bullish for our portfolios.
Tucked into the invoice are “Trump Accounts” (initially known as “MAGA Accounts”). If handed, the federal government would deposit $1,000 right into a inventory market funding account for each U.S.-born child from 2025 by 2028. The household could make a further $5,000 funding a yr. The cash should go right into a low-cost, diversified U.S. inventory index fund and stay untouched till the kid turns 18.
Think about the implications…
If this passes, it means government-mandated inventory shopping for – probably tens of millions of latest accounts funneling cash into the market annually.
Let’s do some crude math to ballpark the influence. Based mostly on present U.S. beginning charges (~3.6 million births yearly), that’s roughly $3.6 billion in recent fairness demand per yr.
However that’s simply the preliminary authorities contribution. Add in some households contributing $5K per yr… plus dividend reinvestment… after which development over 18+ years, and the entire financial influence balloons.
Being conservative, the Milken Institute estimates that $1,000 invested in a broad fairness index might develop to $8,300 over 20 years. Multiply that by 3.6 million kids per yr and also you’re taking a look at roughly $30 billion in potential future fairness market worth added yearly from simply this program.
Realistically, $30 billion is a drop within the bucket relative to the inventory market’s multi-trillion-dollar market cap, but it surely’s a bullish tailwind nonetheless. And extra importantly, these accounts might supply tens of millions of younger Individuals a welcomed monetary head-start within the coming years.
We’ll preserve you up to date on all these tales right here within the Digest.
Have an excellent night,
Jeff Remsburg
