SoFi Begins Stablecoin Settlement on Mastercard Network in Program Expected to Exceed $25 Billion

SoFi launches stablecoin settlement on Mastercard

SoFi Bank has begun settling debit and credit card transactions using its own stablecoin, SoFiUSD, on Mastercard's global payments network. The bank said it is the first bank to go live with stablecoin settlement across Mastercard's system. The program is expected to process more than $25 billion in annualized volume.

Key points

• SoFi is migrating its entire card program to blockchain-based settlement using SoFiUSD.
• The launch follows a March agreement between SoFi and Mastercard to use SoFiUSD for transaction settlement.
• SoFiUSD was launched in December and became available to SoFi banking app users in May.

What the companies say

SoFi CEO Anthony Noto said the two companies moved stablecoin settlement from an idea to a live product in about six months. "In six months, SoFi and Mastercard took stablecoin settlement from an idea to a live product that materially improves how money moves for businesses," Noto said.

Mastercard Global Head of Digital Commercialization Sherri Haymond added that the partnership brings "regulated stablecoin settlement into a live production environment while preserving the trust, scale and safeguards expected from Mastercard."

How the settlement works

Merchants do not need to hold SoFiUSD or change their existing payment systems to use the service. Through SoFi's Big Business Banking platform, merchants can receive instant settlement funds in a SoFi Bank account and withdraw them as cash around the clock at no cost.

SoFiUSD is issued by SoFi Bank, which is regulated by the OCC as a nationally chartered bank. The stablecoin is redeemable 1:1 for U.S. dollars and is backed by reserves consisting primarily of cash. SoFiUSD is available on Ethereum and Solana.

Mastercard's broader stablecoin settlement plans cover eight blockchain networks: Arbitrum, Base, Canton, Ethereum, Polygon, Solana, Tempo, and the XRP Ledger. In June, Mastercard expanded those plans to include USDC, PYUSD, RLUSD, and other regulated stablecoins across multiple blockchains.

What is confirmed

SoFi has gone live with stablecoin settlement on Mastercard's network. The program is expected to exceed $25 billion in annualized volume. SoFiUSD is issued by an OCC-regulated bank and is backed primarily by cash reserves. The settlement service is available on Ethereum and Solana blockchains.

What remains unclear

SoFi said it is in discussions with large U.S. merchants about stablecoin settlement arrangements, including multinational retailers and technology service platforms, but did not name any specific companies. SoFi and Mastercard also said they are exploring further uses for SoFiUSD on the network, such as cross-border payments and remittances, but no timeline or details have been provided for those efforts.

Why this matters

This is the first time a bank has moved its full card program to stablecoin settlement on Mastercard's network. It shows that regulated financial institutions are moving from planning to actual use of stablecoins for everyday payment processing, not just experimentation.

Sources

• The Block

Read also: Canada's Six Largest Banks Launch Joint Tokenized Deposit Initiative

Read also: CFTC Chairman Selig says markets must prepare for 'mass tokenization'

Read also: BVNK Adds Stellar Network Support for Stablecoin Payments