Financial-technology company Fiserv (FI) plans to launch a stablecoin and digital-asset platform for its clients by the end of this year.
The push into cryptocurrencies will give Fiserv’s network of 10,000 financial institutions and six million merchants the ability to transact using digital tokens or Fiserv’s new stablecoin “FIUSD.”
The company said it plans to enable the stablecoin through its current technology at no added cost to customers.
Fiserv is partnering with stablecoin issuers Circle Internet Group (CRCL) and Paxos, and the blockchain platform Solana (SOL), on the project.
In a separate announcement, Fiserv and PayPal Holdings (PYPL) said they would make FIUSD and the stablecoin PayPal USD interoperable to help customers easily move funds.
Fiserv’s venture marks another milestone for stablecoins, which are cryptocurrencies tied to another asset, typically the U.S. dollar or price of gold.
Stablecoins have emerged as one of the hottest areas of crypto, with interest in them spreading throughout traditional financial markets and the broader U.S. economy.
Stablecoin issuer Circle’s stock has soared since its blockbuster June 5 initial public offering (IPO), with the stock up more than 650% from an initial price of $31 U.S.
Retail giants Walmart (WMT) and Amazon (AMZN) have discussed issuing their own stablecoins to customers, according to recent media reports.
FI stock is down 17% this year and trading at $170.54 U.S. per share.
