SoFi Sees Shares Rise with Stablecoin Settlement Launch

SoFi Technologies (NASDAQ: SOFI), the US digital finance platform that offers lending, banking, investing, and crypto services, saw its shares rise after its banking arm went live with stablecoin settlement across its entire debit and credit card programme.

The migration covers SoFi's entire card programme, which is expected to process more than $25bn in annualised payment volume, moving it onto blockchain rails via Mastercard, the global card payments network hosting the settlement.

SoFiUSD, the stablecoin used, is fully reserved and redeemable 1:1 for cash, issued by SoFi Bank under supervision from the Office of the Comptroller of the Currency (OCC), the regulator of nationally chartered banks.

Making it a regulatory milestone as much as a technical one, no other nationally chartered, FDIC-insured US bank has previously put stablecoin settlement into live production on a major card network. Anthony Noto, CEO of SoFi Technologies, said that in six months, they took stablecoin settlement from an idea to a live product.