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Investing.com - Fiserv (NYSE:FI) shares gained 4-5% in pre-market trading Tuesday following the company’s announcement of plans to launch a stablecoin platform by year-end 2025. The financial technology provider will develop the platform for its approximately 3,000 regional and community banking clients in partnership with Solana, Circle, and Paxos.
Fiserv also intends to issue its own stablecoin called FIUSD and will announce a separate partnership with PayPal (NASDAQ:PYPL), which has its own stablecoin called PYUSD. The company is reportedly exploring potential partnerships with major card networks as well.
Keefe, Bruyette & Woods maintained an Outperform rating on Fiserv stock with a $200.00 price target. The research firm noted that the announcement aligns with recent hints from Fiserv’s CEO in public forums and highlights the company’s strong position with U.S. financial institutions to provide financial infrastructure at scale.
The stablecoin initiative positions Fiserv both offensively and defensively in the market, enabling the company to help banks adopt and offer stablecoins if consumer demand trends in that direction. The research firm acknowledged that while this would likely be a long adoption cycle even if successful, discussion around stablecoins is expected to continue.
Keefe, Bruyette & Woods also observed that from Visa (NYSE:V) and Mastercard (NYSE:MA)’s perspective, the value proposition they provide for consumer payments remains strong and difficult to disrupt, despite the emerging stablecoin developments.
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