Global payments and financial services technology Fiserv announced Monday that it has signed a definitive agreement to acquire StoneCastle Cash Management, a New York, N.Y.-based firm that connects its network of depository institutions – primarily community banks and credit unions – with deposit funding opportunities from businesses and enterprise customers holding cash balances.
The financial terms of the transaction, which is expected to close by Q1 2026 subject to regulatory approvals and other customary closing conditions, were not disclosed.
Fiserv said the acquisition enables the company to become a technology-enabled source of billions of dollars of institutional deposits, including from its enterprise customers. The deal will also help Fiserv 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, the company said.
“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,” Fiserv Head of Financial Solutions Andrew Gelb said.
Notably, Fiserv said it plans to leverage StoneCastle’s platform to help financial institutions retain funds associated with FIUSD stablecoin issuance. Fiserv announced its plans to enter the stablecoin space in June.
“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,” Fiserv COO Takis Georgakopoulos said.
StoneCastle, which operates a U.S. deposit network along with a distribution platform to direct cash balances into insured depository institutions, has an existing relationship with over 300 Fiserv core banks as part of its larger deposit network and uses Fiserv’s Finxact platform to support ledger services for its emerging digital asset business.
Keefe, Bruyette & Woods, A Stifel Company, served as exclusive financial advisor to StoneCastle Partners in connection with the transaction, according to the announcement.
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