SoFi Shares Climb After Launching Stablecoin Settlement on Mastercard Network

SoFi Technologies (NASDAQ:SOFI) shares rose 3% on Tuesday after the company announced it is the first nationally chartered bank to go live with stablecoin settlement across Mastercard's global payments network. The move represents a significant step in integrating blockchain technology with traditional financial infrastructure.

Blockchain Settlement Goes Live

SoFi Bank is migrating its entire debit and credit card program to a blockchain-based settlement system. The company stated that this program is expected to process more than $25 billion in annualized volume using its proprietary stablecoin, SoFiUSD.

The launch is the culmination of a partnership with Mastercard (NYSE:MA) that was first announced in March. The new system allows for card transactions to be settled on-chain, aiming to increase the speed and efficiency of payments.

A Regulated Digital Dollar

SoFiUSD is the first stablecoin to be issued by a nationally chartered bank in the United States. As an OCC-regulated institution, SoFi Bank, N.A. issues the stablecoin, which is fully redeemable on a 1:1 basis for U.S. dollars.

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To ensure stability, the company said SoFiUSD is supported by reserves consisting primarily of cash. This backing is designed to provide confidence and distinguish it from other digital assets that are not fully collateralized by fiat currency.

Market and Merchant Implications

The new settlement infrastructure offers potential advantages for businesses. According to SoFi, merchants using its Big Business Banking platform can receive settlement funds instantly and withdraw to cash around the clock at no cost, without needing to hold stablecoins or alter their existing operations.

SoFi confirmed it is in discussions with large U.S. merchants, including multinational retailers and technology platforms, about adopting the settlement arrangements. The company and Mastercard will also explore further applications for SoFiUSD, such as cross-border payments and remittances, signaling a path toward broader adoption of bank-issued stablecoins in the global payments landscape.