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MILWAUKEE - Fiserv, Inc. (NYSE: FI) announced plans to introduce a new digital asset platform that will include a stablecoin called FIUSD, expected to be integrated into the company’s existing banking and payments infrastructure by the end of the year.
The stablecoin will be available across Fiserv’s global network, which includes approximately 10,000 financial institution clients and six million merchant locations that process 90 billion transactions annually. According to the company, FIUSD will be enabled through existing Fiserv technology at no additional cost to clients.
Fiserv plans to utilize stablecoin infrastructure from Paxos and Circle Internet Group, Inc. (NYSE: CRCL), with the intention of making it interoperable with several leading stablecoins. The company stated that FIUSD will be available via the Solana blockchain.
"With our scale, reach, and technology leadership, Fiserv is uniquely positioned to advance stablecoin-powered payments and help democratize access to blockchain financial services," said Takis Georgakopoulos, Chief Operating Officer at Fiserv, in a press release statement. Want deeper insights into Circle’s valuation metrics and 18 additional ProTips? Discover more with InvestingPro.
The new platform will leverage Fiserv’s Finxact core processing platform as the underlying ledger and will connect to the company’s cloud-native orchestration, payments, and banking platforms.
Fiserv indicated that FIUSD is designed to enable financial institutions to maintain control of their customer experience while providing built-in compliance features such as fraud monitoring, risk management, and settlement controls.
The company is also exploring the use of deposit tokens and is in discussions with potential partners to expand use cases for stablecoins and tokenized deposits both domestically and internationally.
In other recent news, Fiserv has announced plans to launch a stablecoin platform by the end of 2024, which could be utilized by its approximately 3,000 regional and community bank clients. This platform will be compatible with other stablecoins and will integrate with Fiserv’s network of 10,000 financial institutions and millions of merchant locations. Fiserv is partnering with blockchain platform Solana and stablecoin companies Circle Internet Group and Paxos for this initiative. Additionally, the company is in discussions with PayPal and other card networks for potential collaborations. Meanwhile, Circle Internet Group has received a buy rating from Seaport Global Securities, which highlights its significant growth potential in the stablecoin market. The firm projects Circle’s annual revenue growth to be between 25%-30% with gross margins around 40%. Furthermore, the U.S. Senate recently passed a stablecoin bill, marking a significant development for the crypto industry. Circle’s stock has seen substantial growth since going public, rising more than 380% from its initial public offering price.
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