SoFi launches stablecoin settlement on Mastercard network

SoFi Bank has begun settling debit and credit card transactions in its own stablecoin, SoFiUSD, across Mastercard's global payments network, migrating its entire card program, which is expected to process more than $25 billion in annualized volume, the companies announced on Sept. 22. The go-live marks the first time a stablecoin issued by a nationally chartered bank is used for settlement across Mastercard's network, according to SoFi. Transactions are running on the blockchain, the companies said, six months after the two firms announced a partnership in March under which SoFi planned to use SoFiUSD to settle its own Mastercard transactions. Merchants do not need to hold stablecoins, build new infrastructure, or change how they operate to receive settlement, SoFi CEO Anthony Noto said. Through SoFi's Big Business Banking platform, merchants can receive settlement funds instantly in a SoFi Bank account and withdraw them as cash around the clock at no cost, Noto said. "In six months, SoFi and Mastercard took stablecoin settlement from an idea to a live product that materially improves how money moves for businesses," Noto said.