Mastercard Moves to Limit Stablecoin Threat. It's Partnering With Fiserv. — Barrons.com

By Nate WolfMastercard is bringing Fiserv's brand-new stablecoin to its global payments network, as cryptocurrency adoption picks up steam across traditional finance.The companies said Tuesday they would issue stablecoin-linked cards for shared customers and enable merchants to settle with Mastercard using Fiserv's new stablecoin FIUSD, among other uses. The news follows Fiserv's announcement Monday that it will launch FIUSD and a stablecoin transaction platform for its banking clients and merchants by the end of the year.Investors appeared optimistic about the announcement. Mastercard stock was rising 3.3%, while Fiserv shares were up 2.6%, having climbed 4.4% on Monday.Shares of Mastercard and its rival Visa slid earlier this month after The Wall Street Journal reported that Walmart, Amazon.com, and other merchants have considered issuing their own stablecoins. Widespread adoption of these tokens — cryptocurrencies pegged to stable currencies like the U.S. dollar — would move more transactions to the blockchain and cut out traditional payments providers.But Mastercard's entry into the world of consumer stablecoins may ease investors' concerns. In a press release Tuesday, the payments giant echoed Fiserv in saying its role as a conduit between merchants and financial services companies would make it a key player in the stablecoin revolution."This work with Fiserv is setting the stage for a new era, where stablecoins are as ubiquitous and trusted as fiat currencies," said Chiro Aikat, Mastercard's Americas co-president, in a statement. "We are creating a robust ecosystem that bridges traditional financial services with digital assets."Mastercard already enables financial institutions in its network to settle payments with stablecoins, but institutions haven't used the tokens due to a lack of regulatory clarity, Mastercard CEO Michael Miebach said at a May investor conference. The partnership with Fiserv brings another token into the company's settlement arsenal.The regulatory environment also grew clearer last Tuesday, when the Senate passed the Genius Act, a bill which establishes a set of rules and guidelines for stablecoins and their issuers."The Genius Act is kind of going through the motions in Congress as we speak," Mastercard CEO Michael Miebach said in May. "I think there's a whole ecosystem that's ready to move."Write to Nate Wolf at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.