Fiserv, a financial and payments company, has launched a new digital currency named FIUSD for banks and financial institutions. It will be integrated into Fiserv’s existing payment systems and will be made available by the end of 2025.
As per the announcement, FIUSD will let banks and merchants use digital assets more easily and safely. Fiserv has a massive network of 10,000 banks and 6 million merchants. This network will offer the FIUSD, and with this reach, it will get a fast start and help clients create new financial products and services.
Fiserv is collaborating with Paxos and Circle, both stablecoin infrastructure leaders. FIUSD will be based on the Solana blockchain. The firm is also looking at utilizing deposit tokens to assist banks in staying stable while handling capital well.
FIUSD will offer the advantages of blockchain, such as fast, 24/7 transactions, with the trust of traditional money. These features make it easier to do things like pay vendors quickly, send money across borders, and build new financial apps.
Additionally, Fiserv is partnering with PayPal to connect FIUSD with PayPal’s stablecoin PYUSD. This will help businesses and consumers move money faster and cheaper, both in the U.S. and internationally. The goal is to expand the use of stablecoins in regular payments.
This collaboration is designed to make digital payments more efficient, accessible, and programmable. Their collaboration will target use cases such as cross-border payments and merchant payments, integrating stablecoins as a ubiquitous component of global commerce.
Fiserv COO Takis Georgakopoulos said, “Together with our other cloud-native banking and merchant platforms, we believe FIUSD will provide our clients with the efficiency and optionality they need to thrive in the evolving banking and payments ecosystem.” He added that the PayPal partnership will boost stablecoin payments by making the system more efficient and flexible.
FIUSD is designed to be easy for banks to integrate using Fiserv’s existing platforms. Banks will still control their customer experience, while also benefiting from built-in tools for fraud detection and compliance. Fiserv will use its modern core system, Finxact, to power the platform.
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