Mastercard to Integrate Fiserv's New Stablecoin Across Global Payments Network

Mastercard to Integrate Fiserv's New Stablecoin Across Global Payments Network

Mastercard said Tuesday it's expanding a partnership with Fiserv to integrate the financial technology and payments company's proposed new FIUSD stablecoin in its products and services. Fiserv announced on Monday that it will launch a new digital asset platform, including FIUSD, to add to its current banking and payments infrastructure by the end of 2025. The firm aims to enable the new stablecoin — a cryptocurrency pegged to a reference asset — through current technology without additional customer charges. Mastercard intends for the blockchain-based token to be used by more than 150 million merchants on its global payments network, according to the payments giant. The companies aim to enable transitions between fiat currency, which is issued by governments, and FIUSD. They also are looking to facilitate FIUSD settlements for global merchants and allow consumers and businesses to make payments in the stablecoin. "We are creating a robust ecosystem that bridges traditional financial services with digital assets," Chiro Aikat, co-president of the Americas at Mastercard, said in a statement. "We are excited to bring Fiserv's FIUSD to our customers, consumers and businesses around the world."Shares of Mastercard rose 2.8% in premarket activity, while Fiserv gained 3.8%. "Our work with Mastercard is promoting greater reach and utility of stablecoins by helping our financial institutions and merchants enable greater payments choice to their customers," Fiserv Chief Operating Officer Takis Georgakopoulos said. Digital payments company PayPal said Monday it will collaborate with Fiserv to develop interoperability between its Paypal USD stablecoin and FIUSD. The companies plan to incorporate the tokens into their payment flows, including cross-border transactions, payouts and merchant solutions. Circle Internet Group also disclosed a collaboration with Fiserv on Monday, saying it will jointly explore and build stablecoin-enabled solutions for financial institutions and merchants within the latter's ecosystem.

MT Newswires