Fiserv Launches FIUSD Stablecoin, Boosts Adoption with Solana Partnership

The stablecoin market, with a market cap of $251.33 billion, has emerged as a significant player in the crypto sector, second only to Bitcoin. Stablecoins facilitate the use of decentralized applications (dApps) such as exchanges and loans by tokenizing dollars across blockchains, making them more practical and accessible. Additionally, stablecoins offer a fast and cost-effective method for international money transfers, relying solely on blockchain networks. The regulatory landscape for stablecoins has also seen progress with the passage of the GENIUS Act through the U.S. Senate, providing the first regulatory framework for these digital assets.

Fiserv, a leading FinTech firm, has taken a significant step in the stablecoin revolution by announcing its own stablecoin, FIUSD, in partnership with Paxos and Circle Internet Group. This stablecoin will be brought to Fiserv clients, which include around 10,000 financial institutions and six million merchants, through the fastest blockchain network, Solana. This move is expected to revitalize the stablecoin market and increase its adoption.

Robinhood Markets Inc. is another key player in the stablecoin revolution. Known for its financial innovation of removing stock trading commissions, Robinhood has accumulated nearly 26 million funded customers, many of whom are well-versed in the crypto sector. In November 2024, Robinhood joined the Global Dollar Network consortium, which includes notable members like Kraken exchange, Galaxy Digital, Anchorage Digital, Bullish, Nuvei, and Paxos. The consortium’s stablecoin, USDG, is pegged to the dollar in a 1:1 ratio. Recently, Mastercard joined the consortium, supporting Fiserv’s FIUSD stablecoin and PayPal’s PYUSD, in addition to Circle’s USDC. This move is expected to increase the operational efficiency of Robinhood due to the 24/7 settlement capability of USDG. Robinhood's financial performance has also been impressive, with a 115% year-over-year improvement in its margin book to a new record of $8.8 billion and a net margin increase from 25% to 36%, delivering net income of $336 million, up 114% year-over-year.

Fiserv Inc., based in Wisconsin, generates revenue through end-to-end FinTech solutions, including digital banking, facilitating payments, regulatory compliance, sales of point-of-sale (POS) devices, and card issuer processing. The company's Merchant Solutions division had the largest organic growth of 8% followed by a 6% uptick in the Financial Solutions division. For the full year 2025, Fiserv expects to see 15%-17% adjusted earnings per share (EPS) growth to $10.10-$10.30 range. Despite these positive developments, FI stock is down 16% year-to-date, currently priced at $172.59 against its 52-week average of $191.90 per share. The average FI price target is $219.50, which is significantly above the current price level. The bottom outlook for FI stock is $145, while its ceiling price is $268 per share.

Circle Internet Group, Inc. is another key player in the stablecoin market. After the cancellation of an official U.S. central bank digital currency (CBDC), regulated stablecoins will serve as significant drivers of demand for U.S. Treasuries. Following the passing of the GENIUS Act through the Senate, both CRCL and Coinbase shares surged. Circle also formed a strategic partnership with Fiserv, leveraging Circle’s existing stablecoin infrastructure to enable borderless payments. After Circle’s public trading debut in early June, CRCL stock is up nearly 60% over the week, currently priced at $250 per share. There are no reliable price targets for CRCL stock at present.