Stablecoins Gain Traction as SoFi Migrates Card Program to Blockchain

SoFi has begun settling debit and credit card transactions with Mastercard using its SoFiUSD stablecoin, marking a shift towards blockchain-based settlement rails. This move does not eliminate intermediaries such as Visa, Mastercard, or banks from the process, but provides an alternative to traditional banking rails.

The bank expects to process over $25 billion in annualized volume through this system and claims that it will settle transactions faster. Customers will continue using their debit and credit cards as normal, while the process moves onchain behind the scenes.

Visa is also expanding its stablecoin settlement pilot, which has reached a $7 billion annualized run rate since April. It supports nine blockchains and describes blockchain settlement as a 'viable complement to traditional settlement rails.'