Sofi Begins Stablecoin Settlement on Mastercard Network for Program Expected to Exceed $25 Billion in Annualized Volume



Sofi Begins Stablecoin Settlement on Mastercard Network for Program Expected to Exceed $25 Billion in Annualized Volume
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Quick Take

  • SoFi has begun settling debit and credit card transactions using its SoFiUSD stablecoin on Mastercard’s global payments network.
  • The bank is migrating its entire card program, which is expected to process more than $25 billion in annualized volume, to blockchain-based settlement.

SoFi has begun settling debit and credit card transactions using its SoFiUSD stablecoin on Mastercard's global payments network, with the bank migrating its entire card program to blockchain-based settlement.

The program is expected to process more than $25 billion in annualized volume, according to a statement shared with The Block on Tuesday. SoFi said it is the first bank 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 settle its own Mastercard transactions. The companies also outlined plans to offer the settlement option to other issuing banks through SoFi's Galileo technology platform. 

SoFiUSD was launched last December and became available to SoFi banking app users in May.

Sofi Targets Merchant Settlement

Merchants do not need to hold SoFiUSD or change their existing payment systems to use the service, according to SoFi CEO Anthony Noto. Through the bank's Big Business Banking platform, merchants can receive instant settlement funds in a SoFi Bank account and withdraw them as cash around the clock at no cost. "In six months, SoFi and Mastercard took stablecoin settlement from an idea to a live product that materially improves how money moves for businesses," Noto said.

"Stablecoins become meaningful when they solve real problems that businesses face every day," Mastercard Global Head of Digital Commercialization Sherri Haymond added. "With SoFi, we're moving beyond exploration to implementation, bringing regulated stablecoin settlement into a live production environment while preserving the trust, scale and safeguards expected from Mastercard. This is another step toward giving businesses more choice in how money moves." 

SoFiUSD is issued by SoFi Bank, an OCC-regulated, nationally chartered bank. The stablecoin is redeemable 1:1 for U.S. dollars and backed by reserves consisting primarily of cash, according to the firm. SoFi said it is already in discussions with large U.S. merchants about stablecoin settlement arrangements, including multinational retailers and technology service platforms, without naming any companies.

SoFiUSD is available on Ethereum and Solana. Mastercard's broader stablecoin settlement plans encompass eight blockchain networks: Arbitrum, Base, Canton, Ethereum, Polygon, Solana, Tempo, and the XRP Ledger. 

Mastercard expanded those plans in June to include USDC, PYUSD, RLUSD, and other regulated stablecoins across multiple blockchains. The payments company said the rollout would support intraday, weekend, and holiday settlement for issuers and acquirers.

SoFi and Mastercard said they are exploring further uses for SoFiUSD on the network, including cross-border payments and remittances.