SoFi Bank N.A. Becomes First Bank-Issued Stablecoin on Major Card Network

SoFi Bank N.A., an OCC-chartered institution that received its federal charter in January 2022, has started settling card transactions using its own stablecoin, SoFiUSD. The bank is migrating its entire card program, expected to process more than $25 billion in annualized volume, onto blockchain rails.

SoFiUSD is the first stablecoin issued by a nationally chartered, FDIC-insured U.S. bank for production card-network settlement. It's fully reserved and redeemable 1:1 for cash, running on Ethereum and Solana.

The partnership between SoFi Bank N.A. and Mastercard allows merchants to enjoy 24/7 instant settlement at zero cost through SoFi's Big Business Banking platform, without needing to hold the stablecoin themselves.