Latest news with #FIUSD
Yahoo
5 hours ago
- Business
- Yahoo
Fiserv launches new stablecoin
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Fiserv said Monday it will launch a digital asset platform – including a new stablecoin, dubbed FIUSD – alongside its existing payments infrastructure by year's end, with no extra cost to merchant clients and financial institutions. In a related announcement, Fiserv and PayPal Holdings said they'll partner 'to build future interoperability' so consumers can move funds with the FIUSD coin on PayPal. The partnership aims to 'expand the use of stablecoins and programmable payments around the globe,' the companies said. 'With our scale, reach, and technology leadership, Fiserv is uniquely positioned to advance stablecoin-powered payments and help democratize access to blockchain financial services,' Chief Operating Officer Takis Georgakopoulos said Monday in the press release. Fiserv said its network's extensive reach – about 10,000 financial institutions and six million merchant locations with 90 billion yearly transactions – 'will provide instant scale' for the FIUSD digital coin. Fiserv also said it's 'exploring the use of deposit tokens to maintain the benefits of stablecoins in a more capital-friendly structure for banks.' The Milwaukee-based company is also talking with other potential partners to expand the use cases for stablecoins and tokenized deposits, the release said. The embrace of stablecoins by large fintech players like Fiserv 'may be quite important to stablecoin adoption for consumers/merchants/businesses,' and could increase wider use of the technology, Baird analysts wrote Monday in a client note. Earlier this month, Fiserv CEO Mike Lyons told investors the company was developing stablecoin capabilities in response to customer interest in cryptocurrency as a potential means of lowering merchant interchange fees. 'It's a great opportunity that plays right into our strengths,' Lyons said June 3 at the Baird Global Consumer, Technology and Services conference. A combination of blockchain programmability and the stability of fiat currency will make the use of stablecoins and tokenized deposits expand rapidly 'due to their ability to settle 24/7, streamline processes, increase efficiency, and power use cases where existing options may be limited,' according to the Fiserv release. The new coin won't affect Fiserv's financial performance this year, but demonstrates the company's rapid innovation, 'which should reinforce its ability to retain share among merchant & financial institution customers as digital asset tech becomes more widely adopted,' TD Cowen analysts Bryan Bergin and Harrison Vivas wrote Monday in a note to clients. Last week, the largest U.S. bank, JP Morgan Chase, announced the launch of its new JPMD, a stablecoin-like token for institutional clients. PayPal and Circle, along with several other companies, have also launched their own stablecoins. Fiserv's stablecoin platform will include technology infrastructure from Paxos Trust and Circle Internet Group. The latter went public earlier this month and has seen its shares soar amid investor fervor for the nascent digital-asset industry, following the embrace of digital assets by President Donald Trump. Fiserv's former CEO, Frank Bisignano, joined the Trump administration this year when he was confirmed last month as the new head of the Social Security Administration. The new Fiserv coin will also be available on Solana, a blockchain platform widely used for stablecoins. In their release, Fiserv and PayPal said they'll 'strive to identify key opportunities for integrating FIUSD and PYUSD into payment flows, including cross-border transactions, payouts, and merchant solutions.' Last week, the U.S. Senate passed the GENIUS Act, an initial step in Congress approving regulations for the cryptocurrency industry. The law, if enacted, is seen as creating wider adoption of stablecoins and more use cases among large banks, retailers, investors and others. The Trump administration has also sought to promote digital assets and blockchain technology, through regulatory agencies by way of a January executive order. Recommended Reading Fiserv CEO embraces stablecoins Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 hours ago
- Business
- Yahoo
How Fiserv jolts the bank stablecoin market
The advancement of the GENIUS Act has thrust stablecoins into the spotlight, with Fiserv being the latest firm to enter the market, hoping to reach a wide range of financial institutions that face pressure from fintechs and large banks. Fiserv said it would launch a digital asset platform, including a stablecoin, FIUSD, that will be part of Fiserv's banking and payments menu by the end of 2025. Additionally, the bank technology company and PayPal plan to make their stablecoins, FIUSD and PYUSD, interoperable. Both of these moves, announced Monday morning, would add drastic scale, opening stablecoins to thousands of financial institutions and PayPal's base of more than 430 million consumers and 36 million merchants. It also joins a fast-growing market of stablecoin issuers that includes a consortium of large banks, major retailers such as Amazon and Walmart and early mover banks such as Societe Generale and Vantage Bank. "Not having a stablecoin is like not having a Rolex years back," Elias Ghanem, global head of Capgemini Research Institute for Financial Services, told American Banker. "Announcement doesn't mean adoption, but early adopters, early launchers, will have higher adoption." With stablecoins, part of the battle is to quickly build a base of users to juice network externalities. Fiserv has more than 10,000 financial-institution clients, processes more than 90 billion transactions each year and has more than 6 million merchant locations. Fiserv plans to make FIUSD available through its existing payment technology at no added cost. FIUSD will use stablecoin infrastructure from Paxos and Circle, and will make the stablecoin available on the Solana blockchain. "Together with our other cloud-native banking and merchant platforms, we believe FIUSD will provide our clients with the efficiency and optionality they need to thrive in the evolving banking and payments ecosystem," Takis Georgakopoulos, chief operating officer of Fiserv, said in a release. Fiserv did not respond to a request for issuers have dominated the stablecoin market, a trend threatening traditional bank deposits if the stablecoin market were to grow dramatically. The expectation that banks will need to respond provides a potential way for Fiserv to expand its client relationships by supporting banks' issuance of FIUSD and by enabling banks to use Fiserv's digital asset platform to issue their own branded stablecoins. "After the GENIUS Act was passed last week, we expected to see a flurry of announcements," Gareth Lodge, an analyst at Celent, told American Banker, adding that integrating the stablecoin into Fiserv's existing offerings for banks and merchants is "a huge step forward and democratizes the opportunity." Fiserv also plans to partner with other stablecoins, announcing an initial collaboration with PayPal, which issues PYUSD, as well as with Paxos. PayPal has spent the past two years partnering with other payment firms to add scale for PYUSD, with support for cryptocurrency trading on PayPal's payment app and its Venmo transfer app helping users build balances that can be used for payments — either in PYUSD or traditional currency. PayPal did not return a request for comment by deadline. "Together with Fiserv, we will help bridge the gap between traditional financial systems and new technologies, enabling faster, more cost-effective, and globally accessible payment options for merchants," Frank Keller, executive vice president at PayPal, said in a release. "There will be no one stablecoin that is universally accepted, so interoperability between Fiserv and PayPal is a major step, but also increases the pressure on others to follow suit," Lodge said. In addition to stablecoins, Fiserv will support deposit tokens, which it said will "maintain the benefits of stablecoins in a more capital-friendly structure for banks." That would enable community banks, credit unions and other financial institutions in Fiserv's network to counter large banks such as JPMorganChase, which is developing a deposit token — an alternative to stablecoins that use a reserve asset structure that is more closely tied to the issuing bank. Fiserv's stock jumped more than 4% in early trading Monday as investors cheered its planned stablecoin. While most analysts said the adoption curve for the thousands of banks in Fiserv's network could be long, there are other benefits for the bank technology vendor. The stablecoin could help Fiserv's broader position among smaller banks against other financial technology vendors, Jeffries said in an analyst research note. "While the digital asset platform should provide small community banks/credit unions with a way to stay up to speed with stablecoins/digital assets, we'd expect the adoption curve among smaller banks to be slower than large banks," Jeffries said. "If anything, we think the announcement could help with branding among smaller banks as FI can pitch offering smaller banks similar tech that is being developed by their larger competitors." Fiserv's strategy will soon face counter moves. Competitors will likely announce more deals such as Fiserv's stablecoin and partnerships with PayPal and Circle, William Blair analysts said in a research note. "These initiatives will only gain traction, however, if they are pursued on a universal platform, in our opinion. This is why we like Fiserv's deal with Circle, the issuer of USDC, but question the decision to launch a branded stablecoin," Jeffries said. "We see little shared functionality or value in a market littered with individual coins when USDC offers a liquid, functional standard with an established issuer who is building a potentially viable ecosystem." The ability to support stablecoin commerce via Fiserv's Clover point of sale system and offering smaller financial institutions an ability to compete in the stablecoin market are "smart moves," William Blair said. Joey Pizzolato contributed to this story. 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Yahoo
5 hours ago
- Business
- Yahoo
Fiserv Is Launching a Bank Stablecoin. Should You Buy FI Stock Here?
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. The Next Trillion-Dollar Boom? 3 Stocks to Buy with 300 Million Humanoid Robots on the Horizon. Is Tesla a Buy or Sell as TSLA Stock Zooms on Austin Robotaxi Launch? These 3 Stocks Have Been Hot in 2025. Should You Sell Them Now Before It's Too Late? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. 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
CNBC
8 hours ago
- Business
- CNBC
Fiserv debuts bank-friendly stablecoin as fintechs join digital dollar race
Fiserv is making a big entrance into the stablecoin market. The payments and fintech giant announced on Monday plans to roll out a new blockchain-based digital asset platform anchored by a U.S. dollar-pegged stablecoin called FIUSD — a product it hopes will bring thousands of banks and millions of merchants into the crypto economy by year's end. The new offering is designed to plug directly into Fiserv's sprawling global network, which already processes 90 billion transactions a year across 10,000 financial institutions and 6 million merchant locations. By baking stablecoin support into its existing banking and payment rails, Fiserv aims to fast-track adoption of blockchain-based money movement without requiring clients to overhaul infrastructure or pay extra fees. FIUSD will initially launch using stablecoin infrastructure from Paxos and Circle — the latter of which is enjoying a stock market surge since its IPO last month. Circle, the issuer of USD Coin, rose 6% on Monday to around $250 a share — more than 700% above its IPO price of $31 when it began trading on June 5. "Fiserv is a global powerhouse in commerce, and Circle is a global fintech firm and stablecoin market leader," said Heath Tarbert, President at Circle. "Together, we will work to unlock the next frontier of money movement – embedding stablecoins into everyday commerce and making money move as easily, reliably, and instantly as sending an email." The launch positions Fiserv as one of the first major payment infrastructure providers to offer stablecoin tools at scale, potentially transforming how banks and merchants settle transactions, send remittances, or offer 24/7 digital dollars to customers. Fiserv's coin will also be compatible with the solana blockchain, a popular choice for stablecoin transactions thanks to its speed and low costs. Fiserv said its long-term goal is to make FIUSD work seamlessly with other major stablecoins and eventually offer a version that helps banks move money more efficiently under existing regulations. Executives said the offering is built to meet the needs of traditional financial institutions — not crypto-native startups. "FIUSD is designed with our clients in mind, a financial institution-friendly coin that simplifies stablecoin access through a secure and scalable ecosystem," said Sunil Sachdev, head of embedded finance at Fiserv. Features like fraud monitoring, risk controls, and settlement compliance are built-in from the start. Fiserv's cloud-native Finxact platform will serve as the underlying ledger. The launch comes as Congress warms to stablecoins. The Senate passed the Genius Act last week, advancing it to the House and signaling growing support for institutional use of tokenized dollars.
Business Wire
9 hours ago
- Business
- Business Wire
Fiserv and PayPal Expand Partnership to Advance Stablecoin Payments
SAN JOSE, Calif. & MILWAUKEE--(BUSINESS WIRE)--Fiserv, Inc. (NYSE: FI) and PayPal Holdings, Inc. (NASDAQ: PYPL), today announced that they are partnering to build future interoperability between FIUSD and PayPal USD (PYUSD), to allow consumers and businesses to move funds domestically and internationally. Combining the global reach of Fiserv and PayPal across banking, consumer, and merchant payments, interoperability will allow both firms to further expand the use of stablecoins and programmable payments around the globe. 'Our expanded relationship with PayPal furthers our mission to scale stablecoin-powered payments—leveraging our position at the intersection of banking and commerce to build more efficiency and optionality into the payments ecosystem,' said Takis Georgakopoulos, COO at Fiserv. 'Businesses around the globe face common problems. They don't receive funds fast enough, they are combating inflation, and many face currency value fluctuations. Blockchain-based technology solves many of these challenges by enabling faster transfers, at any time of day, nearly anywhere around the globe,' said Frank Keller, Executive Vice President at PayPal. 'Together with Fiserv, we will help bridge the gap between traditional financial systems and new technologies, enabling faster, more cost-effective, and globally accessible payment options for merchants.' The two companies will strive to identify key opportunities for integrating FIUSD and PYUSD into payment flows, including cross-border transactions, payouts, and merchant solutions. The partnership underscores both companies' commitment to driving innovation in the financial services industry and empowering businesses and consumers with cutting-edge payment technologies. Today, Fiserv announced it will develop and launch FIUSD, a bank-friendly stablecoin which will enable financial institutions of all sizes to offer next-generation banking solutions to their consumer and commercial clients. Launched in 2023, PYUSD has been successfully used to fund investments in startups, fund cross-border transfers via Xoom, and reconcile vendor invoices. IMPORTANT DISCLOSURES This press release is for informational purposes only and is not intended as financial, investment, or other advice. The use and exchange of digital assets, including stablecoins such as PYUSD, may involve complex risks, including but not limited to: Network & Custody Risks: Transactions on blockchains – and the blockchains themselves – are subject to a range of operational, technological, and security risks. Users are responsible for safeguarding their private keys and/or working with reputable custodians/wallet providers; loss of access may lead to the permanent loss of funds. Third-Party Reliance: Digital assets rely on third-party blockchain software and network infrastructure. Neither PayPal nor Paxos Trust Company, LLC ('Paxos') has control over blockchain networks and is not liable for any blockchain's performance, security, or ongoing availability. Redemption and Market Risk of Fiat-Backed Stablecoins: U.S. dollar- backed stablecoins that are regulated by the New York State Department of Financial Services, are designed to maintain a stable value of one U.S. dollar per token. Individuals or entities with direct redemption access via PayPal, Paxos or authorized partners are guaranteed to convert PYUSD 1:1 for US dollars. All other parties may be limited to selling PYUSD at market prices. Regulatory Uncertainty: Regulatory frameworks for digital assets are evolving. Availability or legality of digital asset services may change without notice, and services may be restricted, suspended, or terminated in certain jurisdictions as required by law or regulation. No FDIC/SIPC Protection: Digital assets, including PYUSD, are not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC). Terms & Conditions: Use of PYUSD is subject to Paxos and PayPal's Terms & Conditions, including disclaimers on liability and user responsibilities. Transactions are irreversible once recorded on the blockchain. You are advised to review and understand all applicable terms. Service Availability & Illegal Activity: PYUSD and related payment services may be suspended or terminated due to events or investigations involving illegal activity, system failure, or other factors beyond PayPal's control. Forward-Looking Statements: Statements in this press release regarding potential product features, expansion plans, and regulatory outcomes are forward-looking and subject to change. Actual results may differ materially due to known and unknown risks, uncertainties, and other factors. About PayPal USD (PYUSD) PayPal USD is issued by Paxos Trust Company, LLC, a fully chartered limited purpose trust company. Paxos is licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. Reserves for PayPal USD are fully backed by U.S. dollar deposits, U.S. Treasuries and similar cash equivalents, and PayPal USD can be bought or sold through PayPal and Venmo at a rate of $1.00 per PayPal USD. PayPal, Inc. (NMLS ID #: 910457) is licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. About Fiserv Fiserv, Inc. (NYSE: FI), a Fortune 500 company, moves more than money. As a global leader in payments and financial technology, the company helps clients achieve best-in-class results through a commitment to innovation and excellence in areas including account processing and digital banking solutions; card issuer processing and network services; payments; e-commerce; merchant acquiring and processing; and Clover®, the world's smartest point-of-sale system and business management platform. Fiserv is a member of the S&P 500® Index and one of Fortune® World's Most Admired Companies™. FI-G
