(Reuters) -Fiserv shares rose 6% in premarket trading on Monday after it unveiled plans to launch a stablecoin, joining a growing number of U.S. companies exploring the technology as the crypto asset moves into the mainstream.
The announcement comes after the U.S. Senate passed a landmark stablecoin bill last week, which analysts said could mark a turning point in the crypto oversight debate and a breakthrough for a sector long mired in regulatory uncertainty.
The financial technology firm said its stablecoin, FIUSD, will be integrated into its existing banking and payments infrastructure by year-end. The company added that FIUSD will rely on stablecoin infrastructure provided by Paxos and Circle Internet.
Shares of Circle, which issues the second-largest stablecoin by market value, rose nearly 4% before the bell.
Stablecoins are pegged to currencies like the U.S. dollar, and are meant to hold a steady value backed by reserves. Once a niche part of the crypto market, these crypto assets have grown in popularity as they offer protection from price swings.
Fiserv also said it has partnered with PayPal to build future interoperability between FIUSD and PayPal USD (PYUSD), to allow consumers and businesses to move funds domestically and internationally.
Interoperability typically allows different stablecoins to function across platforms, enabling users to send, receive or convert between tokens without disruption.
From fintechs to legacy financial institutions, firms are increasingly exploring stablecoins to streamline cross-border payments, reduce settlement times, and expand access to digital finance.
Analysts expect the stablecoin bill’s passage could bring greater legitimacy to the sector.
The Republican-controlled House of Representatives must pass its version of the bill, known as the GENIUS Act, before it heads to President Donald Trump for approval.
(Reporting by Manya Saini in Bengaluru; Editing by Leroy Leo)
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