SoFi has moved its full Mastercard debit and credit card program onto stablecoin settlement, making it the first nationally chartered bank to settle Mastercard card transactions through a stablecoin on the network, according to Mastercard and SoFi.
The company said transactions were already live on Tuesday. The program is expected to handle about $25 billion in annual volume, with settlement running through SoFiUSD, the stablecoin SoFi began issuing earlier this year.
Program goes live on blockchain rails
The change covers SoFi’s entire Mastercard card portfolio rather than a limited pilot. Mastercard said SoFi is the first nationally chartered bank to begin settling card transactions in this way on its network.
SoFi said card transactions had already begun moving through the blockchain as of Tuesday. The launch builds on the existing partnership between SoFi and Mastercard and marks a live deployment of stablecoin-based settlement for a major consumer card program.
How SoFiUSD is structured
Settlement is being handled with SoFiUSD, a token issued by SoFi Bank, N.A. SoFi said the stablecoin is backed primarily by cash reserves and can be redeemed one-for-one for U.S. dollars.
At the same time, the company noted that SoFiUSD is not a bank deposit. It does not carry FDIC or SIPC insurance, even though SoFi Bank, N.A. is overseen by regulators.
Company says move could speed fund access
CEO Anthony Noto described the rollout as a step that takes stablecoin settlement from concept to operating product. He said the aim is to improve how money moves for businesses by giving them faster access to funds through blockchain-based settlement while keeping bank safeguards in place.
The announcement did not add further detail on timing for merchant adoption beyond saying the system is already active. But SoFi framed the change as an operational upgrade to the way card transactions are settled within its Mastercard program.
Mastercard’s broader stablecoin push
For Mastercard, the SoFi launch fits into a wider effort to integrate stablecoins into its payments infrastructure. The company said it plans to explore additional uses for stablecoin settlement, including cross-border payments and remittances.
SoFi also said it is in discussions with large merchants about expanding stablecoin settlement and is considering additional work with Mastercard. Those talks point to possible next steps, but the confirmed development for now is that SoFi’s card program is already settling through SoFiUSD rails.
Source: news.bitcoin.com