SoFi Launches Stablecoin Settlement on Card Rails with Mastercard

SoFi, a US bank, has started settling its card business through a stablecoin called SoFiUSD on Mastercard's global network. The move is significant because it marks the first time a nationally chartered US bank has used stablecoin settlement in production on Mastercard's network.

The annualised volume of this card programme exceeds 25 billion dollars, and merchants do not need to hold SoFiUSD or change their point-of-sale systems. Instead, they receive settlement amounts immediately in a SoFi bank account and can convert them into cash at no cost.

This development is notable because it separates the process from what is sold in Europe as a crypto credit card. In contrast, with SoFi's stablecoin settlement, the customer has nothing to do with crypto assets, while the bank switches to tokens in the background.