SoFi Goes Live on Stablecoin Rails with $25 Billion in Transactions

SoFi has become the first nationally chartered bank to use blockchain-based settlement on Mastercard's global network, marking a significant step in mainstreaming bank-issued digital currency. The San Francisco-based financial firm is shifting its entire debit and credit card program to settle transactions using SoFiUSD, a stablecoin it began issuing this year.

The operation is expected to process roughly $25 billion annually and will allow businesses to access their money faster via the speed of blockchain with the safeguards of a bank. The rollout builds on a partnership between SoFi and Mastercard first revealed in March.

SoFiUSD is backed primarily by cash reserves and can be redeemed for U.S. dollars on a one-to-one basis, per the announcement. Regulators at the Office of the Comptroller of the Currency oversee SoFi Bank, N.A., which issues the token.