Mastercard Inc (NYSE:MA) has announced an expansion of its partnership with financial technology company Fiserv Inc (NYSE:FI) to accelerate the adoption and use of stablecoins, focusing on the integration of Fiserv’s new programmable FIUSD token into Mastercard’s products and services.
This move aims to enable consumers and businesses to make payments using FIUSD at more than 150 million merchants worldwide through Mastercard’s extensive payments network, the company said on Tuesday.
The collaboration centers on enabling seamless transitions between traditional fiat currencies and FIUSD, allowing users to convert funds on and off the blockchain efficiently.
Additionally, merchants will have the option to settle transactions in FIUSD, potentially improving operational efficiency and expanding payment choice.
A key element of the initiative is the integration of Fiserv’s Digital Asset Platform with Mastercard’s Multi-Token Network (MTN), which supports programmable, on-chain commerce. This connection is intended to provide banks with out-of-the-box tools to offer stablecoin-based payment solutions, facilitating the broader use of digital assets within traditional financial frameworks.
“This work with Fiserv is setting the stage for a new era, where stablecoins are as ubiquitous and trusted as fiat currencies, driving choice and innovation for all,” Chiro Aikat, Americas at Mastercard co-president, said in a statement.
“Leveraging the power of the Mastercard network, as well as our deep capabilities across digital assets, we are creating a robust ecosystem that bridges traditional financial services with digital assets.”
Shares of Mastercard added 2% at about $553 in the early afternoon on Tuesday, while Fiserv was up 1.4% at about $173.