Fiserv unveils plans to launch stablecoin with Circle, PayPal as partners
(Reuters) -Fiserv on Monday unveiled plans to launch a stablecoin, joining a growing number of U.S. companies exploring the technology as the crypto asset moves into the mainstream.
The announcement comes after the U.S. Senate passed a landmark stablecoin bill last week, which analysts said could mark a turning point in the crypto oversight debate and a breakthrough for a sector long mired in regulatory uncertainty.
The financial technology firm said its stablecoin, FIUSD, will be integrated into its existing banking and payments infrastructure by year-end. The company added that FIUSD will rely on stablecoin infrastructure provided by Paxos and Circle Internet.
Shares of Circle, which issues the second-largest stablecoin by market value, rose 15%, while Fiserv and PayPal were last up 2.3% and 1.7%, respectively.
Stablecoins are pegged to currencies such as the U.S. dollar and designed to hold a steady value backed by reserves. Once a niche corner of crypto, they have gained popularity for offering protection from price swings.
Fintechs and traditional financial firms are increasingly turning to stablecoins to streamline cross-border payments, speed up settlements, and broaden access to digital finance.
"We view it (the launch) as a positive indicator of Fiserv's ability to innovate rapidly and leverage central positioning between financial institutions and merchants to bridge traditional and emerging payment systems," analysts at TD Cowen said.
Analysts say the stablecoin bill, known as the GENIUS Act, could lend greater legitimacy to the sector, but the Republican-led House must first pass its version before it goes to President Donald Trump for approval.
"It's a timely series of announcements with passage of GENIUS Act appearing increasingly imminent," the brokerage added.
Fiserv said it has partnered with PayPal to build future interoperability between FIUSD and PayPal USD (PYUSD), to allow consumers and businesses to move funds domestically and internationally.
Interoperability typically allows different stablecoins to function across platforms, enabling users to send, receive or convert between tokens without disruption.
(Reporting by Manya Saini in Bengaluru; Editing by Leroy Leo and Shailesh Kuber)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
3 hours ago
- The Star
US announces up to $5 million reward for information on Afghan-American taken by Taliban
WASHINGTON (Reuters) -The U.S. on Monday announced a reward of up to $5 million for information leading to the location and release of Mahmoud Habibi, an Afghan-American businessman who was detained by the Taliban's intelligence service on August 10, 2022. A former civil aviation chief under Afghanistan's ousted Western-backed government, Habibi and his driver were seized along with 29 other employees of the Kabul telecommunications firm for which he worked, said a State Department notice. All except Habibi and one other person were subsequently released. "Mr. Habibi has not been heard from since his initial arrest and the so-called Taliban government has yet to provide any information regarding his whereabouts or condition," said the notice issued by the department's Rewards for Justice program. "Rewards for Justice is offering a reward of up to $5 million for information leading to the location, recovery, and return of" Habibi, it said. The Taliban, who seized Kabul as the last U.S. troops pulled out in August 2021 after a 20-year war, deny holding Habibi. (Reporting by Jonathan Landay)
The Star
4 hours ago
- The Star
Nigerian gov't backs 400-mln-USD rare earth plant
ABUJA, June 23 (Xinhua) -- The Nigerian government has announced its full support for the construction of one of Africa's largest rare earth and critical minerals processing plants in the central state of Nasarawa, expected to attract at least 400 million U.S. dollars in direct investment and create over 10,000 jobs nationwide. Dele Alake, minister of solid minerals development, said in a statement sent to Xinhua Monday that the project, funded by Hasetins Commodities Limited, aligns with the value addition campaign by the President Bola Tinubu-led government, emphasizing in-country processing and beneficiation of minerals. Alake described the development as a "significant milestone in efforts to boost investor confidence in Nigeria's mining sector," saying the plant will promote crucial skills transfer and enhance the solid minerals sector's contribution to the national economy. He said the local firm aimed to increase its current installed capacity of 6,000 metric tons by an additional 12,000 metric tons, with preparations for the groundbreaking of the expanded facility already underway. "I applaud the company for its strategic foresight and patriotic investment in the 400-million-dollar rare earth metals plant," the minister said. Hasetins Commodities Limited is a local private company specializing in the production of critical metals essential for high-tech applications and defense systems, including rare earth and platinum group metals. In a separate statement, the firm said its operational model incorporates early-stage beneficiation by pre-separating metals locally. It added that this approach is designed to generate immediate income for artisanal miners and is coupled with comprehensive training programs, provision of protective equipment, and broader community engagement.
The Star
4 hours ago
- The Star
Romania's broad coalition government wins parliament confidence vote
FILE PHOTO: Romania's Ilie Bolojan walks to attend a European Union summit in Brussels, Belgium March 20, 2025. REUTERS/Yves Herman/File Photo BUCHAREST (Reuters) -Liberal Prime Minister Ilie Bolojan won a parliamentary confidence vote on Monday, ending months of political deadlock with a coalition government that aims to lower the EU's highest budget deficit to avoid losing its investment grade credit rating. The European Union and NATO state has been rocked by political instability in the wake of a presidential election which was canceled in December and re-run in May, with market turmoil boosting borrowing costs and crashing the leu currency. Bolojan's nomination to head a broad pro-European coalition government by centrist President Nicusor Dan, who ultimately won the divisive election at the detriment of the far right, comes after a month of political wrangling over the fiscal measures needed to lower the deficit. While the coalition will have broad support - around 67% of parliament, all but three hard-right groupings - its endurance will depend on unpopular tax hikes and whether the four parties enforce agreed cuts to state spending. "Some of these decisions will not be popular," Bolojan told lawmakers before the vote. "But we must take into account that without the measures Romania would enter decisively into an area of fiscal uncertainty and risk losing touch with European development and higher costs for people and companies." Finance Minister Alexandru Lazare said the government will discuss all proposed measures with the European Commission before approving them from August, adding a mix of spending cuts and tax hikes were needed to restore credibility. The government plans to keep the main value added tax - which Brussels, ratings agencies and analysts said should be raised to lower the deficit - at 19% for now, while two lower 5% and 9% rates will be consolidated in a single 9% one. The government aims to introduce a temporary tax on banks' "excessive profit" from 2026, and introduce new levies on gains from crypto currencies and social media platforms. About a fifth of public sector jobs will be cut. Higher excise duties and property taxes, an increased dividend tax, taxing pensions higher than 4000 lei ($915) monthly and listing minority stakes in state companies on the bourse are among the proposed measures. The government includes Bolojan's Liberal Party, centre-left Social Democrats, centre-right Save Romania Union and ethnic Hungarian party UDMR, with the four parties also backed by national minorities in parliament. The leaders of the four parties agreed to rotate prime ministers before a 2028 parliamentary election, with Bolojan swapping with a leftist Social Democrat in April 2027. The Social Democrats are Romania's largest party and a ruling majority cannot be achieved without them, but the PM rotation could be a destabilizing step as policies and positions are reassessed. ($1 = 4.3738 lei) (Reporting by Luiza Ilie; Editing by Aidan Lewis and Toby Chopra)
