Enabling a source of cost-efficient, stable funding for financial institutions
Helping merchants, financial institutions and fintechs best manage cash reserves backing FIUSD stablecoin issuance
Fiserv, Inc., a leading global provider of payments and financial services technology, announced it has signed a definitive agreement to acquire StoneCastle Cash Management. StoneCastle enables its network of depository institutions, primarily community banks and credit unions, to easily access stable, cost-efficient deposit funding from thousands of businesses and enterprise customers holding cash balances.
This acquisition enables Fiserv to become a technology-enabled source of billions of dollars of institutional deposits, including from Fiserv’s enterprise customers. This helps financial institutions strengthen their balance sheets by integrating insured deposit products alongside their core account processing, digital banking, payments and cash-management capabilities across the Fiserv ecosystem.
Read More on Fintech : Global Fintech Interview With Justin Meretab, Co‑Founder and CEO of Layer
“Acquiring StoneCastle is an important step forward in our strategy to help financial institutions optimize their balance sheets, which will enable them to do more in the communities they serve,” said Andrew Gelb, Head of Financial Solutions at Fiserv.
Additionally, StoneCastle will enable integrated access to other contingent funding solutions for financial institutions. Fiserv plans to leverage StoneCastle’s platform to help financial institutions retain funds associated with FIUSD stablecoin issuance.
“We believe this further sets Fiserv apart in core banking by enabling institutions to custody cash supporting FIUSD stablecoins, while unlocking new value and accelerating innovation across the financial ecosystem,” adds Takis Georgakopoulos, COO at Fiserv.
Founded in 2009, StoneCastle’s insured deposit platform helps optimize individual, commercial and governmental depositors while providing stable funding to over 1,000 FDIC insured depository institutions. StoneCastle operates a leading deposit network in the U.S., paired with an institutional-grade distribution platform to direct cash balances into insured depository institutions. StoneCastle has an existing relationship with over 300 Fiserv core banks as part of the larger deposit network, and it uses Finxact to support ledger services for its emerging digital asset business.
“For more than twenty years, StoneCastle has worked to connect institutional cash with community and regional banks in ways that promote safety, liquidity, and broader access to funding,” said Joshua Siegel, Founder & Chief Executive Officer of StoneCastle Partners, LLC. (“SCP”). “Joining Fiserv will accelerate our ability to innovate, expand our reach to financial institutions and depositors, and deliver even greater value through a unified, modern platform. We’re excited to pair our deposit funding expertise with Fiserv’s technology and client relationships.”
The transaction is expected to close by Q1 2026 subject to regulatory approvals and other customary closing conditions. Financial terms of the transaction have not been disclosed.
Keefe, Bruyette & Woods, A Stifel Company, served as exclusive financial advisor to StoneCastle Partners in connection with the transaction.
Catch more Fintech Insights : The CFO’s New Analyst: Using Generative AI for Strategic Financial Modeling
[To share your insights with us, please write to psen@itechseries.com ]
