SoFi Partners with Mastercard to Use Stablecoin for Card Settlements
- SoFi is migrating its card program to settle transactions using its SoFiUSD stablecoin, expecting over $25 billion in annual volume.
- Visa’s stablecoin settlement pilot has reached a $7 billion annualized run rate, supporting nine blockchains.
- Experts indicate that while stablecoins can enhance payment efficiency, they do not eliminate the need for banks and intermediaries.
- The transition to blockchain-based settlements aims to reduce transaction delays but may not lower overall payment costs due to various factors.
- Local currency liquidity remains essential for completing payments in emerging markets despite the speed of stablecoin transfers.
The integration of stablecoins into traditional payment systems signifies a shift towards more efficient transaction processing, although it does not remove existing financial intermediaries from the equation.
With SoFi’s expected $25 billion in card transactions now utilizing blockchain technology, this move highlights the growing role of stablecoins in modern finance without disintermediating traditional banking structures. (Source)
