Key facts
- SoFi is using its SoFiUSD stablecoin for card program settlement.
- The move is expected to process more than $25 billion in annualized volume.
- SoFi cardholders will continue using their cards as normal.
- The onchain process allows for faster transaction settlement.
- Visa is also using stablecoins for settlement, reaching a $7 billion annualized run rate in its pilot.
- Experts suggest stablecoins may become a larger part of payments without direct consumer interaction.
SoFi has begun settling its debit and credit card transactions with Mastercard using its proprietary stablecoin, SoFiUSD, marking a significant step in the adoption of blockchain technology for payment settlements. The company expects this migration of its entire card program to process over $25 billion in annualized volume. This initiative provides an alternative blockchain-based settlement rail, aiming to expedite transaction processing without changing the user experience for cardholders.
While this move integrates stablecoins deeper into the payment ecosystem, experts emphasize that it does not eliminate existing intermediaries like Visa, Mastercard, or banks. Instead, it offers a new method for settling obligations between participants. Visa has also been exploring similar avenues, reporting a $7 billion annualized run rate for its own stablecoin settlement pilot across nine blockchains.
Payments experts suggest that stablecoins could become more prevalent in financial transactions, potentially operating behind the scenes without direct consumer or business interaction. However, the economic benefits of faster settlement are not guaranteed to translate into lower costs. Factors such as conversion fees, compliance requirements, integration expenses, and liquidity management at scale still need to be thoroughly evaluated to prove the economic viability of stablecoin settlement, especially in cross-border transactions where local currency liquidity can be a challenge.