TL;DR
- SoFi became the first bank to settle card transactions using its own stablecoin on Mastercard’s global network.
- The debit and credit program migrated to blockchain targets over $25 billion in annualized volume through SoFiUSD.
- Merchants don’t need to adopt the stablecoin or modify their existing systems to receive instant dollar settlements.
SoFi Bank began settling debit and credit transactions using its stablecoin, SoFiUSD, on Mastercard‘s global payments network.
The institution migrated its entire card program to a blockchain-based settlement scheme, with an annualized volume projected to exceed $25 billion. It is the first bank to operate in production with stablecoin settlement on Mastercard’s infrastructure.
The agreement between both companies was signed in March, when the bank announced the plan to use SoFiUSD to settle its own transactions on the network. At that same time, a second phase was outlined: extending the stablecoin settlement option to other issuing banks through Galileo, the bank’s technology platform. The stablecoin was launched last December and enabled for banking app users in May of this year.
Merchants Don’t Need to Change a Thing, SoFi Moves All the Pieces
One of the central points of the model is its merchant-oriented design. Merchants don’t need to hold SoFiUSD in their wallets or modify their payment systems. Through the Big Business Banking platform, they can receive settlement funds instantly into a SoFi bank account and withdraw cash twenty-four hours a day, at no cost.
In six months, both companies took stablecoin settlement from an idea to an operational product that materially improves how money moves for businesses.
Sherri Haymond, global head of digital commercialization at Mastercard, noted that the integration is a key step forward, moving from exploration toward material implementation in a regulated environment. The executive emphasized that the goal is to expand the available options for businesses to choose how they move their money, preserving the trust and guarantees inherent to the network.
More Negotiations and New Integrations on the Way
The stablecoin is issued by SoFi Bank, an institution regulated by the OCC under a national banking license. It is redeemable one-to-one for US dollars and is backed primarily by cash reserves.
It operates on Ethereum and Solana. Meanwhile, Mastercard spans around eight blockchain networks, including Arbitrum, Base, Polygon, and the XRP Ledger. The bank confirmed it is already in talks with major US merchants, including multinational retailers and technology platforms, without identifying any company by name.
Both companies also announced they are exploring additional uses for the stablecoin, focusing on cross-border payments and remittances.
