SoFi Stock in Focus as SoFiUSD Stablecoin Goes Live on Mastercard Network

TLDR

• SoFi and Mastercard said stablecoin settlement is now live across SoFi Bank’s debit and credit card program.
• SoFi Bank is the first nationally chartered U.S. bank to use a bank-issued stablecoin for settlement on Mastercard’s network.
• SoFi is moving its entire $25 billion card program to settlement with SoFiUSD.
• Cardholders and merchants do not need to change how they pay or get paid.
• SoFi is in talks with large U.S. merchants about stablecoin-based settlement.

SoFi Technologies and Mastercard said on September 22 that stablecoin settlement is now live across SoFi Bank’s debit and credit card program. The launch uses SoFiUSD, a stablecoin issued by SoFi Bank, N.A.

SoFi Bank is the first nationally chartered U.S. bank to use a bank-issued stablecoin for settlement across Mastercard’s network. Transactions are already live on the blockchain.

SoFi Bank is moving its entire $25 billion card program to stablecoin settlement. The program is expected to process more than $25 billion in annualized volume.

The launch follows a partnership the two companies announced in March. At that time, they said SoFiUSD would become a settlement option on Mastercard’s network.

How SoFiUSD Settlement Works

For cardholders, nothing changes. They keep using their SoFi Mastercard as before, while SoFi Bank uses SoFiUSD behind the scenes to settle eligible transactions.

Merchants also do not need to accept SoFiUSD directly. SoFi CEO Anthony Noto said merchants do not need to hold stablecoins, build new systems, or change how they operate.

Through SoFi’s Big Business Banking platform, merchants can receive settlement funds instantly in a SoFi Bank account. Noto said they can withdraw to cash around the clock at zero 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.

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

SoFiUSD is designed to hold a 1:1 value with the U.S. dollar. It is backed by reserves made up mainly of cash.

The stablecoin is issued by an OCC-regulated bank. However, SoFi’s disclosures state that SoFiUSD is not a bank deposit, is not FDIC-insured, and may lose value.

What Comes Next for SoFi and Mastercard

Mastercard has been adding regulated stablecoins to its settlement options. In June, it announced plans to support USDC, PYUSD, USDG, USDP, RLUSD, and SoFiUSD across several blockchains.

SoFiUSD is also expected to be available on the Mastercard Multi-Token Network. That platform links traditional money with digital assets.

The service may extend past SoFi’s own cards. Galileo, part of SoFi’s technology platform, is expected to offer its card clients and their issuing banks the option to settle using SoFiUSD. No Galileo clients have been confirmed yet.

SoFi reports 15.8 million members. Its SoFi Tech Solutions platform supports more than 134 million global accounts.

The two companies also plan to explore other uses for SoFiUSD on Mastercard’s network. These include cross-border payments, remittances, and other ways of moving money.

SoFi said it is in active discussions with large U.S. merchants about stablecoin-based settlement. These range from multinational retailers to technology service platforms.

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