SoFi Goes Live on the Mastercard Network: SoFiUSD Stablecoin Settlements
The U.S. fintech company SoFi has begun using SoFiUSD to settle debit and credit card transactions on Mastercard’s global payment network, and plans to migrate its entire card program to blockchain-based settlements. The related business is expected to reach an annualized transaction volume of more than $25 billion. SoFi says it is the first bank to officially launch stablecoin settlements on the Mastercard network. Merchants do not need to hold SoFiUSD or change their payment systems; they can receive settlement funds instantly through SoFi’s Big Business Banking platform and withdraw cash for free 24/7. Both sides also plan to offer this service to other issuing banks, and to explore cross-border payments and remittance applications.
After the announcement, SOFI’s shares jumped 4%.
The U.S. fintech company SoFi has begun using SoFiUSD to settle debit and credit card transactions on Mastercard’s global payment network, and plans to migrate its entire card program to blockchain-based settlements. The related business is expected to reach an annualized transaction volume of more than $25 billion. SoFi says it is the first bank to officially launch stablecoin settlements on the Mastercard network. Merchants do not need to hold SoFiUSD or change their payment systems; they can receive settlement funds instantly through SoFi’s Big Business Banking platform and withdraw cash for free 24/7. Both sides also plan to offer this service to other issuing banks, and to explore cross-border payments and remittance applications.
After the announcement, SOFI’s shares jumped 4%.
