Shares of Fiserv (FI) are up about 3% on reports the financial-technology company plans to launch a stablecoin and digital-asset platform for its clients by the end of this year.
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The push into crypto will give Fiserv’s network, which connects roughly 10,000 financial institutions and six million merchants, the ability to transact using digital tokens or Fiserv’s new stablecoin FIUSD. The company said it plans to enable the stablecoin through its current technology at no additional cost.
Fiserv is partnering with stablecoin issuers Circle Internet Group (CRCL) and Paxos, and the blockchain platform Solana (SOL), on the project. In a separate announcement, Fiserv and PayPal Holdings (PYPL) said they would make FIUSD and the stablecoin PayPal USD interoperable in order to help “consumers and businesses to move funds domestically and internationally.”
Hot Crypto
“With our scale, reach, and technology leadership, Fiserv is uniquely positioned to advance stablecoin-powered payments and help democratize access to blockchain financial services,” said Fiserv Chief Operating Officer (COO) Takis Georgakopoulos in a news release.
The venture marks another milestone for stablecoins, which are cryptocurrencies tied to another asset, typically the U.S. dollar or price of gold. Stablecoins have emerged as one of the hottest areas of crypto, with interest in them spreading throughout traditional financial markets and the broader U.S. economy.
CRCL stock has soared since its blockbuster June 5 initial public offering (IPO), with the stock up more than 650% from an initial price of $31. Retail giants Walmart (WMT) and Amazon (AMZN) have discussed issuing their own stablecoins to customers, according to recent media reports. FI stock is down 18% this year.
Is FI Stock a Buy?
The stock of Fiserv has a Moderate Buy rating among 26 Wall Street analysts. That rating is based on 21 Buy, three Hold, and two Sell recommendations issued in the last three months. The average FI price target of $211.09 implies 26.14% upside from current levels.
