Fiserv Launches FIUSD Stablecoin on Solana Blockchain for Institutional Clients

Fiserv, a prominent financial services provider, has announced the launch of a new payment stack featuring a native Solana stablecoin. The FIUSD asset will leverage the infrastructure of Paxos and Circle to create payment gateways for business clients. This initiative is part of Fiserv’s broader digital asset platform, designed to cater to the needs of institutional clients and millions of merchant locations.

Solana will be the first blockchain to host FIUSD, with Fiserv exploring potential partnerships with other public blockchains in the future. Solana already supports USDC, a fully regulated stablecoin that is widely accepted and traded globally. The chain currently holds over 11 billion in stablecoin liquidity, primarily used for crypto-native trading. Solana carries 4.8% of the total stablecoin supply and will be the first chain to carry FIUSD.

Fiserv’s move comes in the wake of the advancement of the US Genius Act, which offers more favorable regulations for stablecoins. Other payment companies and large tech corporations have also explored the addition of stablecoins to their stacks. Takis Georgakopoulos, COO of Fiserv, stated, “With our scale, reach, and technology leadership, Fiserv is uniquely positioned to advance stablecoin-powered payments and help democratize access to blockchain financial services. 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.”

FIUSD will be tailored to the needs of 10,000 financial institutional clients and millions of merchant locations. The stablecoin will be able to carry a part of the $90 billion in annual transactions, thanks to its speed and scalability. Fiserv has also announced that the new stablecoin will not add to processing costs for clients.

The FIUSD stablecoin will target the needs of large-scale institutional clients and use Paxos’s fully regulated approach to issue and distribute the asset. The partnership with Paxos arrives just days after the launch of Paxos Labs, a platform for creating third-party branded stablecoins. Circle will further partner with Fiserv to embed the new stablecoin into merchant sites and payment gateways, similar to other fintech solutions.

Fiserv’s stablecoin announcement follows closely after JP Morgan Chase patented its own JPMD stablecoin for large-scale clients with bank deposits. Unlike JP Morgan, FIUSD will work directly for live payments, instead of running a sandbox program. Similar to JP Morgan Chase, Fiserv will also explore the offerings of tokenized deposits, which differ from stablecoins in that they reflect balances in the bank’s own books. Tokenized deposits can give banks more flexibility in asset transfers.

Stablecoins have been proposed as a tool for 24/7 transfers and for streamlining business processes where other tools are unavailable. Stablecoins as a whole have expanded to a new peak, encompassing a mix of tokens backed by US treasuries, bank deposits, or by other crypto assets. Stablecoins remain a key payment tool and are now more widely used by online merchants.