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Fiserv Is Launching a Bank Stablecoin. Should You Buy FI Stock Here?

Fiserv Is Launching a Bank Stablecoin. Should You Buy FI Stock Here?

Yahoo5 hours ago

Fiserv (FI) shares are inching up on Monday after the financial technology company announced plans of launching its own stablecoin (FIUSD) by the end of 2025.
In its press release, the financial technology giant said FIUSD will be integrated into its 'existing banking and payments infrastructure' over the next six months.
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Despite today's gain, Fiserv stock is down more than 25% versus its year-to-date high.
On Monday, the NYSE-listed firm said it has partnered with Circle (CRCL), Paxos, and even Solana to roll out a new digital asset platform powered by FIUSD.
Additionally, Fiserv has teamed up with PayPal (PYPL) to make its stablecoin interoperable with PYUSD and make it incrementally easier for 'consumers and businesses to move funds domestically and internationally.'
The development is largely positive for FI shares as it positions the multinational to capitalize on continued momentum in the stablecoin market that Seaport Research believes has already hit $260 billion in market cap.
Following the Senate's approval of the GENIUS Act last week, the investment firm expects the stablecoin market to scale rapidly and hit a $500 billion valuation by the end of next year and up to $2.0 trillion longer term.
TD Cowen dubbed the FIUSD announcement a 'positive indicator' as it reiterated its 'Buy' rating on Fiserv stock on Monday.
In its research note, the investment firm said FI's plans of launching a stablecoin signal its 'ability to innovate rapidly.'
Additionally, the fintech is primed to 'leverage central positioning between financial institutions and merchants to bridge traditional and emerging payment systems,' it added.
TD Cowen analysts currently have a $233 price objective on Fiserv shares that indicates potential upside of another 40%.
Other Wall Street analysts also see FI shares as potentially undervalued and recommend loading up on them at current levels.
According to Barchart, the consensus rating on Fiserv stock currently sits at 'Strong Buy' with the mean target of about $220 indicating potential upside of more than 30% from here.
On the date of publication, Wajeeh Khan 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 Barchart.com

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Skeena Gold & Silver Announces Results of Annual General Meeting

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IBM and RIKEN Unveil First IBM Quantum System Two Outside of the U.S.

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