SoFi Leverages Stablecoin to Speed Up Payment Processing

SoFi has started settling debit and credit card transactions with Mastercard using its SoFiUSD stablecoin, marking a significant shift in the way payments are processed.

The move is part of a broader trend where stablecoins are being used as settlement mechanisms rather than as consumer-facing payment tools.

According to a SoFi spokesperson, the bank's entire card program, which processes over $25 billion in annualized volume, will be migrated to this blockchain-based settlement approach.

However, payments experts argue that this is not 'disintermediation' in the traditional sense, as Visa and Mastercard, along with banks, still calculate obligations and manage interactions.