In a recent update, SoFi has begun debit and credit card transactions using its SoFiUSD stablecoin on Mastercard’s global payments network as the bank transitions its complete card portfolio to a blockchain settlement infrastructure.
According to a statement shared with The Block on Tuesday, the program is intended to process more than $25 billion in annualized volume, making the one institution one of the first banks to go live with stablecoin settlement across Mastercard’s network.
The launch follows a March agreement between the two firms under which SoFi planned to use SoFiUSD to clear and settle its own Mastercard volume transactions. Meanwhile, the companies proposed a settlement framework to other issuing banks through SoFi’s Galileo technology platform.
SoFi CEO Anthony Noto underlined that merchants do not need to hold SoFiUSD or transform their existing payment systems to use the service.
“In six months, SoFi and Mastercard took stablecoin settlement from an idea to a live product that materially improves how money moves for businesses.”
“Stablecoins become meaningful when they solve real problems that businesses face every day, “Mastercard Global Head of Digital Commercialization Sherri Haymond added.”
SoFi said it is already in talks with large US merchants about stablecoin settlement arrangements featuring international tech-driven retail giants without naming any specific companies.
SoFiUSD is available on Ethereum and Solana with Mastercard’s comprehensive stablecoin clearing strategies involving eight blockchain networks including Arbitrum, Base, Canton, Solana, Tempo and the XRP Ledger. In addition, SoFi and Mastercard said they are investigating further uses for SoFiUSD on the network involving international payments.
