SoFi Bank Pioneers Blockchain-Based Card Settlement on Mastercard Network

SoFi Bank has become the first bank to settle card transactions using its own stablecoin on Mastercard's global payments network. The institution migrated its entire card program to a blockchain-based settlement scheme, targeting over $25 billion in annualized volume through SoFiUSD.

The agreement between SoFi and Mastercard was signed in March, with the plan to use SoFiUSD to settle transactions on the network. Merchants don't need to hold SoFiUSD in their wallets or modify their payment systems to receive instant dollar settlements.

SoFi Bank's Sherri Haymond noted that the integration is a key step forward, moving from exploration toward material implementation in a regulated environment. The goal is to expand available options for businesses to choose how they move their money, preserving trust and guarantees inherent to the network.