TheBlock
SoFi has begun settling debit and credit card transactions with its SoFiUSD stablecoin on Mastercard's global payments network, migrating its entire card program to blockchain-based settlement. The bank said it is the first to go live with stablecoin settlement across Mastercard's network, and the program is expected to process more than $25 billion in annualized volume. SoFiUSD, issued by OCC-regulated, nationally chartered SoFi Bank, is redeemable 1:1 for US dollars, backed primarily by cash reserves, and available on Ethereum and Solana.
Why it matters
This is the first time a nationally chartered US bank has moved its full card book onto stablecoin rails inside a major card network, shifting stablecoins from crypto-native experimentation into core banking infrastructure. Merchants do not need to hold SoFiUSD or alter existing payment systems: through SoFi's Big Business Banking platform, they receive instant settlement into a SoFi Bank account and can withdraw cash around the clock at no cost, according to CEO Anthony Noto, who said the firms took settlement "from an idea to a live product" in six months.
The companies also plan to extend the settlement option to other issuing banks through SoFi's Galileo technology platform. Mastercard's broader stablecoin settlement roadmap spans eight blockchain networks, including Arbitrum, Base, Canton, Ethereum, Polygon, Solana, Tempo, and the XRP Ledger, with support for USDC, PYUSD, RLUSD, and other regulated stablecoins added in June.
Market impact
The launch compresses a settlement cycle that traditionally spans days into instant, intraday, weekend, and holiday windows for issuers and acquirers, a direct working-capital gain for merchants. SoFi said it is already in discussions with large US merchants, including multinational retailers and technology service platforms, about stablecoin settlement arrangements, and the two firms are exploring cross-border payments and remittances as the next use cases for SoFiUSD on the network.
Frequently asked questions
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What is SoFiUSD and who issues it?
SoFiUSD is SoFi's US dollar stablecoin, issued by SoFi Bank, an OCC-regulated, nationally chartered bank. It is redeemable 1:1 for US dollars and backed by reserves consisting primarily of cash.
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Which blockchains support SoFiUSD?
SoFiUSD is available on Ethereum and Solana. Mastercard's broader stablecoin settlement plans span eight networks, including Arbitrum, Base, Canton, Polygon, Tempo, and the XRP Ledger.
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Do merchants need to change their payment systems to use SoFi stablecoin settlement?
No. Merchants do not need to hold SoFiUSD or modify existing systems. They receive instant settlement into a SoFi Bank account and can withdraw cash around the clock at no cost.
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How much transaction volume will the SoFi-Mastercard stablecoin program process?
SoFi's card program settling through SoFiUSD on Mastercard's network is expected to process more than $25 billion in annualized volume, per a statement shared with The Block.
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Will other banks be able to use SoFi's stablecoin settlement?
Yes. SoFi and Mastercard outlined plans to offer the settlement option to other issuing banks through SoFi's Galileo technology platform, and are exploring cross-border payments and remittances.
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