Fiserv Launches Cash-Settlement Platform for Digital Asset Firms
Payment/financial services firm Fiserv has debuted a real-time cash-settlement platform for digital asset companies.
The INDX platform, announced Thursday (Feb. 12), is designed to help digital asset companies securely store and transfer U.S. dollars in real time and around the clock.
“INDX advances the strategic vision behind bringing StoneCastle into the Fiserv ecosystem, combining our unique position at the intersection of banking and commerce with proven insured-deposit funding solutions to create differentiated value for our clients,” said Takis Georgakopoulos, co-president at Fiserv, referring to a recent acquisition by the company.
“For the first time, digital asset companies have a settlement engine to move real fiat US dollars in a manner that is faster, more secure, scalable, and fully programmable,” he added.
Instead of routing funds outside of traditional banking systems or moving them on-chain, INDX distributes digital asset companies’ funds across the Fiserv Deposit Network, made up of more than 1,100 insured U.S.-based financial institutions.
“This keeps cash securely off-chain while delivering the real-time settlement speed and flexible operating windows demanded by digital asset companies,” the company added.
According to a news release, INDX lets companies open accounts with Fiserv, make transactions within milliseconds, and have their balance insured for up to $25 million by the FDIC, which Fiserv says is 100 times more than a traditional account.
Fiserv announced its plans to acquire StoneCastle in September, saying the purchase would let it leverage that company’s platform to help financial institutions retain funds associated with FIUSD stablecoin issuance.
As PYMNTS wrote earlier this week, banks are increasingly looking to issue stablecoins “as distributed ledger technology matures and regulators clarify expectations around custody, reserves and consumer protection.”
One of the major themes stemming from these bank-led initiatives is a clear focus on wholesale, and not retail, use. Unlike consumer-facing wallets or payment apps, most bank-issued stablecoins are created to operate behind the scenes, bolstering “the economics of existing processes,” the report added.
“What’s taking shape is not a single ‘bank stablecoin’ model, but a family of instruments that reflect where inefficiencies are most painful, and where incumbents believe blockchain rails can quietly outperform legacy systems,” PYMNTS wrote.
However, the report added, it’s becoming clear that there will be no one-size-fits-all bank stablecoin, as the market segments along functional lines.
“We don’t start with the asset,” Biswarup Chatterjee, global head of partnerships and innovation, Citi Services at Citi, said in an interview with PYMNTS. “We typically start with our client need, and then we look at the pros and cons of each type of asset or financing instrument.”
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