SoFi migrates $25 billion card program to SoFiUSD stablecoin on Mastercard network

SoFi Bank has announced the full transition of its $25 billion card program to settle debit and credit card transactions using SoFiUSD, its proprietary stablecoin, on Mastercard’s global payments network.

Instant settlements for merchants without new infrastructure

The move, which went live on Tuesday, enables merchants to receive instant settlements directly into a SoFi Bank account, without the need to hold stablecoins or build dedicated blockchain infrastructure. The bank has emphasized that no changes are required to existing business practices.

Anthony Noto, CEO of SoFi, stated that businesses can access settlement funds in cash, free of charge, 24 hours a day. He noted that the solution combines the efficiency of blockchain technology with banking safeguards.

Merchants do not need to hold stablecoins, build new infrastructure, or change how they operate. With SoFi’s Big Business Banking platform, any merchant can instantly receive settlement funds in a SoFi Bank account and withdraw as cash at any time.

SoFi is currently in discussions with a range of major US merchants regarding stablecoin settlement, including large multinational retailers and technology service providers.

Mastercard partnership and network launch

The collaboration between SoFi and Mastercard follows a partnership announced in March. The companies have now activated stablecoin-powered settlements on the blockchain. According to SoFi, it is the first national bank to provide stablecoin settlement across the Mastercard network.

Sherri Haymond, Mastercard’s Global Head of Digital Commercialization, stated that stablecoins become significant for the industry when they address real-world business challenges.

Stablecoins become meaningful when they solve real problems that businesses face every day.

SoFiUSD stablecoin details and regulatory oversight

SoFiUSD is the digital dollar issued by SoFi Bank, N.A., a nationally chartered bank regulated by the US Office of the Comptroller of the Currency (OCC). The stablecoin is fully backed by reserves, primarily held in cash, and is redeemable on a one-to-one basis for US dollars.

Kraken, a leading cryptocurrency exchange, began listing SoFiUSD for trading earlier this month. Mastercard also expanded its card settlement offering in June, allowing SoFiUSD and other stablecoins as settlement options.

SoFi and Mastercard have indicated plans to explore additional use cases for SoFiUSD, particularly in cross-border payments and remittances.

Mini dictionary: SoFi Bank is a US-based national bank and financial technology company offering banking, investing, and lending services, regulated by the US Office of the Comptroller of the Currency (OCC). SoFiUSD is the USD-backed, fully reserved stablecoin issued by SoFi Bank.