SoFi Shares Rise 3% as Bank Launches Stablecoin Settlement on Mastercard Network

SoFi Technologies (NASDAQ:SOFI) shares gained 3% on Tuesday after the company announced that SoFi Bank had become the first nationally chartered US bank to introduce live stablecoin settlement across Mastercard’s global payments network.

The bank is migrating its entire debit and credit card programme to blockchain-based settlement using SoFiUSD, its US dollar-backed stablecoin.

According to SoFi, the programme is expected to handle more than $25 billion in annualised payment volume once the migration is complete.

SoFi Bank Begins Blockchain-Based Card Settlement

The launch follows a partnership announced in March between SoFi and Mastercard (NYSE:MA) to develop stablecoin-based payment settlement.

SoFi said settlement using SoFiUSD is now operational across its debit and credit card programme, with transactions processed through blockchain infrastructure.

The company intends to migrate its full card programme to the new settlement arrangement.

The projected annualised volume of more than $25 billion reflects the scale of the programme rather than a figure for transactions already settled using SoFiUSD.

SoFiUSD Backed by Cash Reserves

SoFiUSD is issued by SoFi Bank, N.A., a nationally chartered institution regulated by the Office of the Comptroller of the Currency (OCC).

The company describes SoFiUSD as the first stablecoin issued by a nationally chartered bank.

The digital token is designed to maintain a one-to-one value with the US dollar and is fully redeemable for dollars, according to SoFi.

Its reserves consist primarily of cash, providing backing for the stablecoin’s redemption arrangements.

Merchants Offered Instant Settlement Through SoFi Platform

Through its Big Business Banking platform, SoFi is offering merchants the ability to receive settlement proceeds instantly into a SoFi Bank account.

The company said merchants can withdraw those funds as cash around the clock without incurring withdrawal costs.

Businesses using the service are not required to hold stablecoins, develop blockchain infrastructure or change their existing operations.

The arrangement is designed to allow merchants to access blockchain-based settlement while continuing to receive and manage funds through conventional bank accounts.

SoFi Discusses Adoption With Major US Merchants

SoFi said it is holding discussions with large merchants across the United States about adopting stablecoin-based settlement.

Potential customers include multinational retailers and technology service platforms, although the company did not identify individual businesses or announce additional agreements.

SoFi and Mastercard also plan to explore further applications for SoFiUSD, including cross-border payments, remittances and other money transfer services.

These potential uses remain separate from the card settlement programme that has already launched.

Launch Extends Stablecoin Use in Payment Infrastructure

The initiative introduces a bank-issued stablecoin into the settlement process for SoFi’s Mastercard debit and credit card transactions.

According to the company, the system is intended to provide issuers, acquiring banks and merchants with additional options for managing settlement and liquidity.

The migration represents an expansion of SoFi’s blockchain-based payments operations, with further adoption dependent on the completion of its card programme transition and any subsequent commercial agreements.

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