SoFi Switches to Stablecoin for Debit and Credit Card Settlements

SoFi has started settling debit and credit card transactions with Mastercard using its SoFiUSD stablecoin, aiming to cover over $25 billion in annualized card volume. The move enables faster transaction completion for SoFi's card volumes, but intermediaries like Visa, Mastercard, and banks still manage settlement rules and obligations.

The shift to blockchain-based rail does not change how consumers use debit and credit cards; the payments experience remains unchanged. However, onchain settlement allows transactions to be completed faster behind the scenes.

Martins Benkitis of Gravity Team notes that stablecoins are not yet removing core intermediaries because Visa, Mastercard, banks, and payment networks still manage transaction rules, obligations, and participant interactions.

The technology is currently changing the economics of settlement more than the broader structure of payments. Varun Datta of Truth Ventures says continuous settlement can reduce delays and cut capital firms need to park in different places, particularly for cross-border payments.