SoFi and Mastercard Introduce Stablecoin Settlement for Card Transactions
- SoFi is migrating its card portfolio, exceeding $25 billion in annual volume, to use stablecoin settlement via SoFiUSD.
- SoFiUSD, issued by federally chartered SoFi Bank, can be redeemed at a rate of 1:1 for the U.S. dollar.
- Transactions are currently being processed on the blockchain as part of this new settlement system.
- Merchants using the SoFi Big Business Banking platform can access funds without fees and without needing to hold stablecoins or change their operations.
- Mastercard plans to expand its use of stablecoins across its global payments network, following its acquisition of BVNK.
The launch of stablecoin settlement by SoFi and Mastercard represents a significant shift in payment processing for businesses, aiming to enhance transaction efficiency without requiring changes in merchant infrastructure.
With over $25 billion in annual transaction volume now utilizing stablecoin technology, this initiative marks a notable advancement in modern banking solutions.(Source)
