Payments giant Fiserv announced plans Monday to launch its own stablecoin by year's end and forge partnerships with PayPal and Circle, positioning the Fortune 500 company to tap into the rapidly expanding digital dollar market that has surged past $200 billion in 2025.
The Milwaukee-based financial technology firm will introduce FIUSD, a bank-friendly stablecoin that will integrate across its network of approximately 10,000 financial institutions and six million merchant locations processing 90 billion transactions annually. The move represents one of the largest traditional finance companies to directly enter the stablecoin space.
Fiserv's dual partnership strategy aims to create interoperability between its FIUSD token and existing digital currencies. The company will collaborate with PayPal to enable seamless transfers between FIUSD and PayPal USD, allowing consumers and businesses to move funds domestically and internationally12.
"Our expanded relationship with PayPal furthers our mission to scale stablecoin-powered payments—leveraging our position at the intersection of banking and commerce to build more efficiency and optionality into the payments ecosystem," said Takis Georgakopoulos, Fiserv's chief operating officer1.
Separately, Fiserv announced a strategic collaboration with Circle Internet Group to utilize the stablecoin infrastructure provider's regulated USDC framework3. FIUSD will use infrastructure from both Paxos and Circle and will be available via the Solana blockchain45.
"Fiserv is a trusted leader in enabling money movement across the financial ecosystem," said Jeremy Allaire, Circle's chairman and CEO. "By integrating with Circle's infrastructure, Fiserv is positioned to extend the benefits of stablecoin-based payments and open internet finance to thousands of financial institutions"3.
The announcements come as Washington moves toward the first federal stablecoin legislation. The Senate passed the bipartisan GENIUS Act last week in a 68-30 vote, setting strict standards including full asset backing and monthly reserve disclosures12. The bill now heads to the House for final approval.
Frank Keller, PayPal's executive vice president, highlighted the business case: "Businesses around the globe face common problems. They don't receive funds fast enough, they are combating inflation, and many face currency value fluctuations. Blockchain-based technology solves many of these challenges"3.
Fiserv shares surged 7.1% in premarket trading following the announcement, according to GuruFocus1. Analysts forecast a one-year price target of $221.42, suggesting potential upside of 35.52% from recent trading levels1.
The company plans to enable FIUSD through existing technology at no additional cost to clients, delivered through an easy-to-integrate software development kit that fits into platforms like Experience Digital and Commercial Center2.
