SoFi began settling debit and credit card transactions through its SoFiUSD stablecoin on Mastercard’s payments network. The programme represents more than $25 billion in annualised card volume, according to separate reports from Barron’s and Investor’s Business Daily. The operational launch turns a partnership announced in March into a live settlement arrangement for SoFi Bank’s own card activity.
SoFiUSD is a fully reserved US-dollar stablecoin issued by SoFi Bank, a nationally chartered and insured depository institution. Mastercard and SoFi said in March that they planned to make the token available as a settlement option across Mastercard’s network. At that stage, the companies described SoFi Bank’s own card settlement and access for clients of SoFi’s Galileo technology platform as expected future steps.
FROM AGREEMENT TO LIVE SETTLEMENT
The latest implementation shifts SoFi’s card programme onto Mastercard’s network using SoFiUSD for settlement. This creates a regulated-bank test case for using a public-blockchain token behind conventional debit and credit card transactions while cardholders continue to use familiar payment products.
Mastercard had already expanded its settlement capabilities to include stablecoins, intraday processing and weekend options. Its March agreement with SoFi also contemplated support through the Mastercard Multi-Token Network, which is designed to connect traditional money, stablecoins and tokenised deposits.
A PLATFORM BEYOND SOFI'S OWN CARDS
SoFi has said Galileo could offer other payment-card clients and their issuing banks the choice to settle transactions in SoFiUSD. The partners have also identified cross-border remittances, business transfers and programmable treasury uses as areas for possible expansion, subject to regulation and Mastercard’s network rules.
The next milestone is whether SoFi extends live settlement beyond its own card book to Galileo clients or other Mastercard participants. Adoption by outside issuers would show whether the arrangement can develop from an internal programme into broader bank-grade payments infrastructure.