SoFi launches stablecoin settlement on Mastercard's network

SoFi Technologies (NASDAQ: SOFI) and Mastercard (NYSE: MA) announced that stablecoin settlement is now live across SoFi Bank, N.A.'s debit and credit card program, following a partnership first announced in March.

SoFi Bank is migrating its entire card program to blockchain-based settlement using SoFiUSD, a stablecoin the company describes as the first issued by a nationally chartered bank. The program is expected to process more than $25 billion in annualized volume. SoFiUSD is issued by SoFi Bank, N.A., which is regulated by the Office of the Comptroller of the Currency, and is redeemable 1:1 for U.S. dollars, with reserves consisting primarily of cash. SoFiUSD is not insured by the FDIC or SIPC.

According to the companies, merchants are not required to hold stablecoins or build new infrastructure to participate. Settlement funds can be received in a SoFi Bank account and withdrawn to cash.

"In six months, SoFi and Mastercard took stablecoin settlement from an idea to a live product that materially improves how money moves for businesses," said Anthony Noto, CEO of SoFi.

Sherri Haymond, Global Head of Digital Commercialization at Mastercard, said the companies are "moving beyond exploration to implementation, bringing regulated stablecoin settlement into a live production environment."

SoFi said it is in active discussions with large U.S. merchants, including multinational retailers and technology service platforms, regarding stablecoin-based settlement arrangements. The two companies also plan to explore additional uses of SoFiUSD on Mastercard's network, including cross-border payments and remittances.

The announcement is based on a press release issued by SoFi Technologies.

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