Fiserv and PayPal Augment Collaboration for Enhancing Stablecoin Transactions
In a move aimed at enhancing global payment solutions, Fiserv and PayPal have announced a partnership to explore opportunities for integrating their respective stablecoins, FIUSD and PayPal USD (PYUSD), into payment flows. This includes cross-border transactions, payouts, and merchant solutions, with the ultimate goal of removing friction and driving innovation across global payments and commerce use cases.
Fiserv, a leading global provider of financial services technology, recently announced plans to launch FIUSD, a stablecoin designed to improve efficiency and interoperability for financial institutions. The stablecoin will leverage infrastructure from Paxos and Circle, and operate on the Solana blockchain, ensuring broad compatibility.
On the other hand, PYUSD, launched in 2023, has been successfully used for funding investments, cross-border transfers via Xoom, and reconciling vendor invoices. PayPal, Inc., which is licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services, issues PYUSD through Paxos Trust Company, LLC. Notably, reserves for PayPal USD are fully backed by U.S. dollar deposits, U.S. Treasuries, and similar cash equivalents.
However, as of June 23, 2025, the New York State Department of Financial Services (NYDFS) has not yet approved Fiserv's FIUSD stablecoin. Similarly, while the partnership between Fiserv and PayPal exists, it remains subject to regulatory approvals, including NYDFS consent, which has not yet been granted.
This regulatory status means that FIUSD's full launch and integrated use with PayPal USD await further regulatory clearance to ensure compliance, particularly from NYDFS, which is a leading digital asset regulator. Users are reminded to safeguard their private keys or work with reputable custodians/wallet providers to avoid the permanent loss of funds. It is also important to note that digital assets, including PYUSD, are not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC).
Frank Keller, Executive Vice President at PayPal, emphasized the potential of blockchain-based technology to solve many challenges faced by businesses, such as slow fund receipt, inflation, and currency value fluctuations. The partnership between Fiserv and PayPal reflects this sentiment, as both firms seek to expand the use of stablecoins and programmable payments globally.
Services may be restricted, suspended, or terminated in certain jurisdictions as required by law or regulation. As the regulatory landscape for digital assets continues to evolve, the availability or legality of digital asset services may change without notice.
[1] Source: Fiserv Press Release, June 1, 2025 [2] Source: PayPal Press Release, June 1, 2025 [3] Source: New York State Department of Financial Services, June 23, 2025 [4] Source: Fiserv-PayPal Joint Statement, June 1, 2025
The partnership between Fiserv and PayPal, two prominent players in the financial and technology sectors, seeks to integrate their stablecoins, FIUSD and PayPal USD (PYUSD), into various payment flows, including cross-border transactions, payouts, and merchant solutions, with the ultimate aim of driving innovation and removing friction across global payments and commerce use cases. However, the full launch and integrated use of Fiserv's FIUSD stablecoin, which is designed to improve efficiency and interoperability for financial institutions, await further regulatory clearance, notably from the New York State Department of Financial Services, a leading digital asset regulator.
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