SoFi has started settling debit and credit card transactions with Mastercard using its SoFiUSD stablecoin, with plans to migrate its entire card program expected to process more than $25 billion in annualized volume to the system.
The shift represents a change in how payments are settled behind existing card networks, moving from traditional banking rails to blockchain-based settlement. For SoFi cardholders, the change occurs largely behind the scenes—customers continue using debit and credit cards normally while transactions settle faster onchain.
According to a SoFi spokesperson, the change does not remove intermediaries from the card settlement process but provides an alternative blockchain-based settlement rail. Visa and Mastercard remain part of the transaction flow, as do banks and network participants that calculate obligations and manage how participants interact.
Visa is also advancing stablecoin settlement. The company reported in April that its stablecoin settlement pilot had reached a $7 billion annualized run rate as it expanded support to nine blockchains.
Settlement Speed and Economics
Stablecoins could reduce delays and the amount of capital firms need to keep in different locations for payments, particularly across borders. However, conversion, compliance, integration, and stablecoin-management costs remain considerations. Federal Reserve researchers noted in a March report that stablecoins could change the economics of payments without necessarily eliminating banks.
Speed on a blockchain does not automatically translate to cheaper end-to-end payments, according to payments experts. Evidence of lower total costs and better liquidity management at scale would be needed to establish a proven economic case.
Local Currency Challenges
While dollar-denominated stablecoins can move between balance sheets within minutes, completing payments in emerging markets presents additional complexity. Local currency liquidity can be thinner, fewer banks may handle flows, and access to domestic banking systems remains required to finish payments after stablecoins deliver value.
