SoFi Launches Stablecoin Settlement on Mastercard Network
SoFi has begun using its SoFiUSD stablecoin to settle debit and credit card transactions on Mastercard's global payments network. This move marks a significant step towards greater adoption of blockchain-based settlement in the financial industry.
The program is expected to process more than $25 billion in annualized volume, making it one of the largest stablecoin settlements on the network. SoFiUSD is issued by SoFi Bank and is backed by reserves consisting primarily of cash, allowing for 1:1 redemption with U.S. dollars.
The launch follows a March agreement between SoFi and Mastercard to use SoFiUSD for settlement. The companies also plan to offer the option to other issuing banks through SoFi's Galileo technology platform. Merchants can receive instant settlement funds in a SoFi Bank account, which they can withdraw as cash at any time without cost.
Sherri Haymond, Mastercard's Global Head of Digital Commercialization, said 'Stablecoins become meaningful when they solve real problems that businesses face every day.' She added that this implementation brings regulated stablecoin settlement into a live production environment while preserving the trust and scale expected from Mastercard.