Fiserv said in a press release it will launch its own stablecoin, “FIUSD will be powered by the infrastructure of Paxos and Circle, and targets interoperability with other stablecoins,” and will launch on the Solana network. Fiserv also plans to work with banks on deposit tokens The partnership with PayPal is to make their two stablecoins interoperable… which is fascinating 🧠 Everyone needs a stablecoin story. Analysts are asking about it, its moving stocks, and so “announcing” something is smart PR. 🧠What do I need a “core” ledger for if I have stablecoins? There’s the small matter fo all of the assets in all of the world existing on existing core ledgers. If stablecoins are going to get liquidity that’s going to need to work well with the banking sector. Banks are becoming the ISPs of onchain finance. 🧠 Every bank would need new tech to work with their existing tech. Banks don’t replace their core in the same way you don’t replace your heart and brain in a single surgery. The existential risk is too high. 🧠Deposit tokens will find their place in the market. Onchain finance will need many funding models. Just as sponsor banks did very well in BaaS, the banks (and shadow banks) that lean into stablecoins will reap a massive opportunity. 🧠Paxos and Circle are strange bedfellows. Paxos is a major competitor to Circle, behind the USDG consortium (which Robinhood and Mastercard are a part of). It’s custodied in Singapore meaning it offers 4.1% yield. 🧠Compatibility with PYUSD is a sign of the thinking here. There’s an interoperability problem in stablecoins. Do this fix it? 🧠We’re at peak stablecoin PR surely. SoFi launched global remittances, the Visa CEO was on CNBC talking about them, Kraken launched “Krak” their stablecoin-only wallet to compete with PayPal / Wise etc