SoFi Technologies and Mastercard have launched stablecoin settlement across SoFi Bank’s debit and credit card program, enabling the use of SoFiUSD on Mastercard’s global payments network. This move allows merchants to receive settlement funds instantly in a SoFi Bank account and withdraw to cash at any time and at no cost.
The integration of SoFiUSD for stablecoin settlement on Mastercard's network offers businesses enhanced flexibility and efficiency in managing funds, potentially reducing transaction costs and settlement times by bridging traditional finance with blockchain technology.
SoFi Technologies and Mastercard have announced the live implementation of stablecoin settlement across SoFi Bank’s debit and credit card program, utilizing SoFiUSD. This integration allows SoFiUSD to be used for settlements on Mastercard’s global payments network, a move that follows earlier support for stablecoins like Ripple's RLUSD and Circle's USDC.
SoFi Bank is migrating its entire $25 billion card program to stablecoin settlement, becoming the first bank to achieve this on the Mastercard network. The initiative aims to expand settlement and liquidity management options for card issuers, acquirers, and merchants, demonstrating how bank-issued stablecoins can interface with existing payment infrastructure to connect traditional finance with blockchain technology.
According to SoFi CEO Anthony Noto, merchants will not need to hold stablecoins or alter their operational procedures. Through SoFi’s Big Business Banking platform, they can receive settlement funds instantly in a SoFi Bank account and convert them to cash around the clock at no charge. Mastercard is facilitating regulated stablecoin settlement, offering businesses greater flexibility in financial transactions. SoFiUSD is backed by reserves primarily composed of cash and is redeemable 1:1 for U.S. dollars.
This development is part of Mastercard's broader strategy to support stablecoin settlements across its network, collaborating with a diverse group of banks, fintech firms, and stablecoin issuers. Previously, Mastercard integrated Ripple's RLUSD into its global settlement network, enhancing its support for 24/7 on-chain settlements with various regulated stablecoins, including USDC, Paxos' PYUSD, USDG, and USDP.
Ripple's participation in Mastercard's Crypto Partner Program is intended to advance on-chain payments, joining other notable crypto entities such as Binance, Circle, Gemini, PayPal, and Paxos. While stablecoins have traditionally been used for cryptocurrency trading, their adoption as settlement assets is growing among banks, payment firms, and asset managers seeking to leverage blockchain for instant, cross-border transfers outside conventional banking hours.
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