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 per cent, while Fiserv and PayPal were last up 2.3 per cent and 1.7 per cent, 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.
