SoFi Partners with Mastercard for $25 Billion Stablecoin Settlement

SoFi Technologies has partnered with Mastercard to settle its $25 billion debit and credit card program using SoFiUSD, the first stablecoin issued by a nationally chartered bank. This move is seen as a push for SoFi's bank charter and blockchain infrastructure in core payments plumbing.

The shift to SoFiUSD settlement could reshape how issuers, acquirers, and merchants manage liquidity and settlement using bank-issued stablecoins.

For SoFi Technologies' investment narrative to shift positively, the company needs to demonstrate improving profitability, with a key near-term catalyst being clear evidence of higher returns on equity. The risk is that SoFi's growth story, including crypto and AI adjacent products, does not translate into higher net income margins and returns.

Analysts have already penciled in significant revenue growth for SoFi Technologies, with estimates ranging from $9.3 billion to $1.9 billion in earnings by 2029. The company's own projections point to a 25-30% net income margin, while current guidance sits near 17%. The partnership and the launch of SoFiUSD may serve as a fresh data point that could shift expectations.