SoFi and Mastercard Migrate Card Settlements to Blockchain-Based Stablecoins

SoFi has started settling debit and credit card transactions with Mastercard using its SoFiUSD stablecoin. This move allows the bank to settle transactions faster, as it migrates its entire card program to a blockchain-based settlement rail.

The annualized volume of this system is expected to exceed $25 billion. According to a spokesperson for SoFi, this shift does not remove intermediaries from the card settlement process but provides an alternative.

Visa has also been expanding support for its stablecoin settlement pilot, which reached a $7 billion annualized run rate in April and now supports nine blockchains.

Federal Reserve researchers have noted that stablecoins could change the economics of payments without necessarily eliminating banks. Some experts agree, saying this shift will provide faster settlement options without cutting out intermediaries like Visa or Mastercard.