SoFi begins settling its entire Mastercard card program on a proprietary stablecoin
The bank is migrating debit and credit card transactions representing more than $25 billion in projected annualized volume onto blockchain-based settlement using SoFiUSD, with merchants receiving funds directly into SoFi Bank accounts rather than holding the stablecoin themselves.
SoFi Bank has launched stablecoin settlement for its debit and credit card program across Mastercard’s global payments network, using SoFiUSD, a stablecoin issued by SoFi Bank, N.A., to settle transactions on the blockchain rather than through traditional card-network settlement rails.
SoFi says it is migrating its entire card program to the new system, which the bank projects will represent more than $25 billion in annualized transaction volume once the migration is complete. Under the arrangement, merchants do not need to hold or manage SoFiUSD directly: settlement funds land in the merchant’s existing SoFi Bank account, and can be withdrawn as ordinary cash at any time.
The move positions SoFi among a small group of U.S. banks moving card-network settlement onto blockchain rails using a bank-issued stablecoin, rather than relying on a third-party stablecoin issuer. Proponents of stablecoin settlement argue it can reduce settlement times and interbank reconciliation costs compared with traditional card-network clearing, which typically settles in batches over one to several business days.
SoFi has not disclosed a completion date for migrating the full card program, nor specific figures on settlement-time or cost reductions realized so far. As with other bank-issued stablecoin initiatives, the practical significance will depend on adoption at scale rather than the initial technical rollout.