SoFi Technologies and Mastercard announced on September 22 that stablecoin settlement is now live across SoFi Bank's debit and credit card program, making SoFi Bank the first bank to go live with stablecoin settlement on the Mastercard network.
The launch migrates SoFi Bank's entire $25 billion card program to stablecoin settlement using SoFiUSD. SoFiUSD is fully redeemable 1:1 for U.S. dollars and supported by reserves consisting primarily of cash.
How the Settlement Works
The stablecoin settlement expands liquidity management capabilities for card issuers, acquirers, and merchants. Merchants do not need to hold stablecoins, build new infrastructure, or change their operations. Through SoFi's Big Business Banking platform, merchants can receive settlement funds instantly in a SoFi Bank account and withdraw to cash around the clock at zero cost.
The initiative demonstrates how bank-issued stablecoins can operate alongside existing payment infrastructure, bridging traditional financial systems and blockchain-based networks.
Broader Stablecoin Ecosystem
This milestone supports Mastercard's efforts to expand stablecoin settlement across its global payments network. Mastercard previously added Ripple's RLUSD stablecoin to its settlement network and has expanded support for 24/7 on-chain settlements using regulated stablecoins including Circle's USDC, Paxos' PYUSD, USDG, USDP, and SoFiUSD.
Ripple and other crypto firms including Binance, Circle, Gemini, PayPal, and Paxos have joined Mastercard's Crypto Partner Program to advance on-chain payments.
Shifting Use Cases
While stablecoins have historically been used primarily for crypto trading, banks, payment firms, and asset managers are increasingly viewing them as settlement assets. Traditional finance companies are seeking to move financial instruments on-chain to support instant cross-border transfers outside traditional banking schedules.
