Fiserv has announced the launch of a stablecoin payment platform that could potentially serve millions, supported by thousands of regional banks. The company has partnered with Solana, Circle, and Paxos for this development and will issue a stablecoin called FIUSD. Additionally, banks will have the ability to issue their own tokens.
Global Fintech Company Fiserv to Launch Platform to Democratize Stablecoin Access
WRITTEN BY
SHARE
Financial Giant Fiserv Aims to Democratize Stablecoin Access With New Platform
As stablecoins penetrate the payments system, more institutions are eager to adopt them. Fiserv, a global financial services platform, has announced plans to launch a stablecoin platform that will facilitate the entrance of regional banks and other institutions to this sector.
The platform, which is expected to be operational by the end of the year, will launch on top of Solana’s blockchain with the collaboration of Paxos and Circle, allowing these banks to leverage Fiserv’s soon-to-be-issued stablecoin, FIUSD, or even to launch their tokens.
In exchange, Fiserv will keep part of the fees associated with stablecoin operations on its platform and will also take a cut of the earnings of the reserve assets backing these stablecoins, including U.S. Treasury yields.
COO Takis Georgakopoulos stressed Fiserv’s goal is to become a facilitator for these institutions, managing compliance and other operational processes, while “democratizing” access to stablecoin tech for these smaller banks that risk getting left out of the upcoming stablecoin push.
The platform will also be interoperable with other stablecoins, using Circle’s infrastructure. Circle CEO Jeremy Allaire stated:
Fiserv is positioned to extend the benefits of stablecoin-based payments and open internet finance to thousands of financial institutions.
Fiserv’s announcement comes as the stablecoin ecosystem, once considered a niche business, is now gearing up for mainstream adoption, as institutions are championing the low-fee, high-speed payments benefits of these instruments. The market capitalization of the sector rose to over 250 billion this month.
E-commerce and retail giants such as Amazon and Walmart have reportedly explored the issuance of stablecoins, and even Visa has recently highlighted that every money transmitting business will have to develop a stablecoin strategy this year.
Read more: Stablecoins Shatter $250B Barrier in Historic Crypto Milestone
Read more: Visa: All Money-Moving Institutions Will Need Stablecoin Strategy This Year
