Image Credit: Shutterstock
- SoFi Bank has started settling debit and credit card transactions using SoFiUSD on Mastercard's payments network for annualized volume expected to exceed $25 billion.
- Merchants using SoFi’s infrastructure receive settlement funds in a SoFi Bank account and can withdraw them as cash around the clock without holding stablecoins.
- Galileo plans to extend SoFiUSD settlement to other card issuers, while cross-border payments and merchant discussions remain under exploration.
SoFi Bank has started settling transactions from its debit and credit card program using SoFiUSD on Mastercard’s payments network, moving a program expected to process more than $25 billion in annualized volume onto blockchain-based settlement.
The companies said settlement transactions are already live on-chain. The change affects how SoFi and Mastercard settle card activity behind the scenes rather than requiring customers to spend stablecoins or merchants to accept them directly.
SoFiUSD Goes Live Across SoFi Debit and Credit Card Settlement
SoFi is migrating its full card program to settlement using SoFiUSD, the dollar stablecoin issued by SoFi Bank. The companies first announced plans for the integration in March.
SoFiUSD is intended to be redeemable 1:1 for US dollars, with reserves consisting primarily of cash. It is issued by SoFi Bank, a nationally chartered bank regulated by the Office of the Comptroller of the Currency, but the stablecoin itself is not an FDIC-insured deposit.
Customers can continue using their debit and credit cards normally. SoFiUSD enters the process at the settlement layer rather than changing how cardholders make purchases.
Merchants Can Receive Cash Without Holding SoFiUSD
Businesses using SoFi’s settlement infrastructure do not need to hold stablecoins or build their own blockchain systems.
SoFi CEO Anthony Noto said merchants can receive settlement funds in a SoFi Bank account through the company’s Big Business Banking platform and withdraw them as cash around the clock.
Mastercard has separately expanded support for regulated stablecoin settlement, including USDC, PYUSD, USDG, USDP, RLUSD and SoFiUSD across supported blockchain networks.
Galileo Could Extend SoFiUSD Settlement to Other Card Issuers
The card rollout gives SoFi a live deployment for infrastructure it also plans to extend through its Galileo technology platform.
SoFi and Mastercard said in March that Galileo would be among the first platforms to offer payment-card clients and their issuing banks the option to settle transactions using SoFiUSD.
The companies are also exploring SoFiUSD settlement for cross-border payments, remittances and other money-movement services. SoFi said on Sept. 22 that it is in discussions with large US merchants about separate stablecoin-based settlement arrangements.
Those extensions are not yet part of the live rollout. For now, the confirmed production deployment covers SoFi Bank’s card program, with more than $25 billion in expected annualized processing volume moving toward SoFiUSD settlement.
