Mastercard and SoFi Partner on 24/7 Stablecoin Settlement

SoFi Technologies and Mastercard have forged a partnership that will allow banks and card issuers on Mastercard's global network to settle transactions using SoFiUSD, a digital dollar backed by SoFi Bank N.A. This agreement enables financial institutions to use an alternative to conventional fiat settlement, with SoFiUSD operating on a public, permissionless blockchain.

The deal also gives SoFi Bank the ability to process its own Mastercard credit and debit transactions through SoFiUSD, while Galileo, the company's payments technology division, will extend that option to its client banks and partner card issuers.

SoFiUSD, introduced in December, carries backing from the Office of the Comptroller of the Currency, which regulates SoFi Bank as an insured depository institution. The company positions it as the first stablecoin from a U.S. nationally chartered, federally insured bank deployed on a permissionless blockchain with cash reserves held at a 1:1 ratio to tokens in circulation.