Fiserv and PayPal said they’re teaming up to identify key opportunities for integrating their respective stablecoins, FIUSD and PYUSD, into payment flows.

Financial technology giant Fiserv (FI) announced on Monday that it is launching its own stablecoin called FIUSD and teaming up with PayPal Holdings (PYPL) to build future interoperability with their stablecoin PayPal USD (PYUSD).

Fiserv’s stock jumped more than 3% after the opening bell, while PayPal’s stock rose nearly 2%.

The two companies announced plans to identify key opportunities for integrating FIUSD and PYUSD into payment flows, including cross-border transactions, payouts, and merchant solutions. 

They added that the goal of the collaboration is to allow consumers and businesses to move money more easily, both within the U.S. and internationally, using stablecoins instead of traditional bank wires or payment methods. 

While FIUSD is yet to hit the market, PYUSD was launched in 2023 and has been used to fund investments in startups, fund cross-border transfers via Xoom, and reconcile vendor invoices since then.

“Businesses around the globe face common problems. They don’t receive funds fast enough, they are combating inflation, and many face currency value fluctuations,” said Frank Keller, Executive Vice President at PayPal. “Blockchain-based technology solves many of these challenges by enabling faster transfers, at any time of day, nearly anywhere around the globe.”

According to a Wall Street Journal report, Fiserv is also expected to announce partnerships with Solana (SOL) and Circle Internet (CRCL), the creator of the USDC (USDC) stablecoin, as it works on building an entire platform for stablecoins to be used by its clients. To that end, it may also potentially team up with card networks.

The announcement comes on the heels of the GENIUS Act clearing the Senate, which has led to market optimism about stablecoins becoming a mainstream financial instrument, especially given U.S. President Donald Trump’s rhetoric as the self-acclaimed “Crypto President.”

Walmart (WMT) and Amazon (AMZN) are also reportedly looking into launching their own stablecoins to sidestep traditional payment networks, as well as some of the biggest banks in the U.S.

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