Mastercard and SoFi Launch Stablecoin Settlement for $25 Billion Card Program
Mastercard and SoFi Technologies have launched a new stablecoin payment settlement system for SoFi Bank's $25 billion card program. The move marks a significant shift towards mainstream adoption of blockchain technology in traditional banking.
The system uses SoFiUSD, a U.S. dollar-backed stablecoin issued directly by SoFi Bank, which runs on a public, permissionless blockchain. This allows for near-instant settlement at 'fractional-cent pricing', significantly reducing the time and cost associated with traditional card settlement methods.
Merchants using SoFi's Big Business Banking platform can now receive settlement funds instantly and withdraw them as cash at any hour without paying fees. The system also supports 24/7 transactions, enabling businesses to manage their cash flow more efficiently.
Mastercard and SoFi are already exploring the expansion of this model into cross-border payments and remittances, which could revolutionize international money transfers by reducing costs and increasing speed.