SoFi begins settling $25 billion annualised card programme in SoFiUSD

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 SoFi. 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

SoFi Bank is migrating its entire card programme to settlement in SoFiUSD, the companies said. Mastercard said SoFi is the first nationally chartered bank to begin settling card transactions with stablecoins on its network.

Mastercard said in March that stablecoin settlement would let card issuers and acquirers enable businesses to settle transactions 24 hours a day, seven days a week. 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.