SoFi Pioneers Blockchain Settlement with Mastercard
- SoFi becomes the first national bank to settle card transactions via blockchain in partnership with Mastercard.
- The firm will migrate its entire credit and debit card program, expected to process approximately $25 billion annually, to settle using the SoFiUSD stablecoin.
- SoFiUSD is backed by cash reserves and redeemable one-to-one for U.S. dollars but lacks FDIC or SIPC insurance.
- The initiative marks a significant step towards integrating stablecoins into mainstream financial systems.
- SoFi is in discussions with major merchants to expand stablecoin settlement, including cross-border payments.
This move by SoFi and Mastercard represents a pivotal advancement in the adoption of blockchain technology within traditional banking systems, offering faster transaction speeds and enhanced security through blockchain’s capabilities.
By shifting its $25 billion card program to blockchain settlement, SoFi aims to streamline financial transactions while exploring further applications like cross-border payments with major retailers and platforms. (Source)
