SoFiUSD Goes Live Across Mastercard Network

SoFi Technologies' stablecoin, SoFiUSD, is now live across Mastercard's network. This development has led to a 1.77% increase in SoFi's share price intraday. The company's entire $25 billion card program will be migrated to settlement in SoFiUSD, with transactions running on the blockchain as of today.

SoFi claims that businesses don't need to hold stablecoins or build new infrastructure to use its Big Business Banking platform. Merchants can receive settlement funds instantly in a SoFi Bank account and withdraw to cash around the clock at no cost.

As the first stablecoin issued by a nationally chartered bank, SoFiUSD is redeemable one-to-one for dollars against reserves held primarily in cash. However, it isn't FDIC-insured and can lose value.

SoFi is currently in talks with large US merchants about implementing stablecoin settlement. The company and Mastercard will also explore further uses of the network, including cross-border payments and remittances.