SoFi has moved its entire debit and credit card programme onto stablecoin settlement rails through Mastercard, bringing bank-issued digital currency into live production across the payments network.

The US digital financial services platform said the programme, operated through SoFi Bank, N.A., is expected to process more than $25bn in annualised volume. Settlement is now running through SoFiUSD, with transactions being recorded on the blockchain.

The launch follows a partnership between SoFi and Mastercard announced in March and marks a move from exploring stablecoin applications to using the technology as part of live payments infrastructure.

SoFi said the integration is designed to give card issuers, acquirers and merchants more flexibility around settlement and liquidity without requiring businesses to adopt new infrastructure or hold stablecoins themselves.

The development also demonstrates how bank-issued stablecoins can operate alongside established payments networks, potentially creating new routes for moving money while retaining existing banking and merchant relationships.

For Mastercard, the launch is part of its broader push to support stablecoin settlement across its network. The company has been working with banks, FinTechs, stablecoin issuers and other payments businesses as the technology moves from experimentation towards commercial use.

SoFiUSD is issued by SoFi Bank, N.A., a nationally chartered bank supervised by the Office of the Comptroller of the Currency. Each SoFiUSD token is redeemable for one US dollar and is primarily backed by cash reserves.

The stablecoin is available to institutional clients and SoFi members for payments, settlement and other related uses. SoFi notes that SoFiUSD is not a deposit, is not covered by FDIC or SIPC insurance, is not guaranteed by a bank, is not legal tender and may lose value.

Source link