SoFi has become the first national bank to go live with stablecoin settlement across Mastercard’s global payments network, the companies announced on Sept. 22.
SoFi Bank is moving its entire $25 billion card program to blockchain-based settlement using SoFiUSD, a stablecoin issued by the federally regulated bank. Transactions are already live on the blockchain.
The launch allows card transactions to settle using stablecoins while merchants can continue receiving regular U.S. dollar payments. SoFi said merchants do not need to hold stablecoins or build new blockchain infrastructure.
SoFiUSD is fully redeemable 1:1 for U.S. dollars and backed primarily by cash reserves. It is available for institutional and SoFi member use across payments, settlement and other financial applications.
The companies said blockchain-based settlement can give businesses faster access to funds while continuing to use Mastercard’s existing payment infrastructure.
SoFi and Mastercard are also exploring additional uses for SoFiUSD, including cross-border payments, remittances and other money-transfer services.
The companies said SoFi is already discussing stablecoin settlement with major U.S. merchants, ranging from large retailers to technology platforms.
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