Mastercard Moves to Limit Stablecoin Threat. It's Partnering With Fiserv. — Barrons.com

By Nate Wolf

Mastercard is bringing Fiserv's brand-new stablecoin to its global payments network, as cryptocurrency adoption picks up steam across traditional finance.

The companies said Tuesday they would issue stablecoin-linked cards for shared customers and enable merchants to settle with Mastercard using Fiserv's new stablecoin FIUSD, among other uses. The news follows Fiserv's announcement Monday that it will launch FIUSD and a stablecoin transaction platform for its banking clients and merchants by the end of the year.

Investors appeared optimistic about the announcement. Mastercard stock was rising 2.3% in premarket trading, while Fiserv shares were up 3.8%, on track for their best three-day stretch since September 2020, according to Dow Jones Market Data.

Shares of Mastercard and its rival Visa slid earlier this month after The Wall Street Journal reported that Walmart, Amazon.com, and other merchants have considered issuing their own stablecoins. Widespread adoption of these tokens — cryptocurrencies pegged to stable currencies like the U.S. dollar — would move more transactions to the blockchain and cut out traditional payments providers.

But Mastercard's entry into stablecoins may ease investors' concerns. In a press release Tuesday, the payments giant echoed Fiserv in saying its role as a conduit between merchants and financial services companies would make it a key player in the stablecoin revolution.

"This work with Fiserv is setting the stage for a new era, where stablecoins are as ubiquitous and trusted as fiat currencies," said Chiro Aikat, Mastercard's Americas co-president, in a statement. "We are creating a robust ecosystem that bridges traditional financial services with digital assets."

Write to Nate Wolf at nate.wolf@barrons.com

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