SoFi Begins Stablecoin Settlement on Mastercard With $25B Projection

SoFi Bank began settling debit and credit card transactions with its SoFiUSD stablecoin on Mastercard’s global payments network, a launch the company projects will handle more than $25 billion in annualized volume.

The settlement program went live Sept. 22. SoFiUSD moves funds between institutions after card transactions, while cardholders and merchants continue using the cards and payment systems they already have.

SoFiUSD is issued by SoFi Bank, N.A., which is regulated by the Office of the Comptroller of the Currency. The token is redeemable 1:1 for U.S. dollars and backed primarily by cash reserves. It is not a bank deposit and is not insured by the Federal Deposit Insurance Corp. or the Securities Investor Protection Corp.

“Merchants do not need to hold stablecoins, build new infrastructure or change how they operate,” SoFi CEO Anthony Noto said.

Merchants can receive settlement funds in a SoFi Bank account and withdraw cash around the clock. SoFi is also discussing stablecoin settlement arrangements with large U.S. merchants, although it has not identified them.

The $25 billion figure is a projection, not reported historical volume. SoFi and Mastercard announced their partnership in March, including plans for Galileo, SoFi’s technology platform, to offer SoFiUSD settlement to client banks.