SoFi Becomes First National Bank to Launch Stablecoin Settlement

SoFi Technologies and Mastercard have launched stablecoin settlement across SoFi Bank’s debit and credit card program, with the bank migrating its entire $25 billion card program to blockchain-based settlement using SoFiUSD.

The companies announced on September 22 that transactions are now live on the blockchain through SoFiUSD, the stablecoin issued by SoFi Bank, N.A., an OCC-regulated, nationally chartered bank.

The program is expected to process more than $25 billion in annualized volume, making the launch one of the larger live deployments of bank-issued stablecoin settlement within an existing payments network.

SoFi Moves Card Settlement Onchain

Under the new arrangement, SoFi Bank will use SoFiUSD to settle transactions across its debit and credit card program on Mastercard’s global payments network.

The move does not require merchants to hold stablecoins or change their existing payment infrastructure.

SoFi said merchants can receive settlement funds in a SoFi Bank account through its Big Business Banking platform and withdraw the funds as U.S. dollars.

The companies said the model is intended to give businesses faster access to settlement funds while allowing them to continue using existing payments infrastructure.

SoFiUSD Connects Bank Settlement With Blockchain

SoFiUSD is issued by SoFi Bank and is fully redeemable 1:1 for U.S. dollars. The stablecoin is backed primarily by cash reserves and is available for institutional and SoFi member use.

The launch follows the companies’ partnership announced in March to enable SoFiUSD settlement across Mastercard’s global network.

With the settlement system now live, the partnership has moved from an announced initiative to an operational payments application.

Mastercard Expands Stablecoin Settlement

For Mastercard, the SoFi launch adds another live stablecoin settlement arrangement to its broader efforts to incorporate digital assets into its payments infrastructure.

The launch builds on Mastercard’s broader expansion of stablecoin settlement across its global payments network.

SoFi and Mastercard said they will explore additional SoFiUSD settlement applications, including cross-border payments, remittances and other money-movement use cases.

Mastercard’s move comes as major payment networks increasingly develop infrastructure for stablecoin-based settlement. Visa has also expanded its stablecoin services for financial institutions.

SoFi Targets Wider Merchant Adoption

The settlement system is not limited to SoFi Bank’s own card program.

SoFi said it is in discussions with large U.S. merchants about stablecoin-based settlement arrangements, including multinational retailers and technology service platforms.

The company is positioning bank-issued stablecoins as a settlement tool that can operate alongside existing financial infrastructure rather than requiring merchants to directly interact with blockchain networks.

The launch therefore puts SoFiUSD into a live payments environment while retaining settlement through a regulated U.S. bank and Mastercard’s existing network.

Banks Take Different Routes to Onchain Settlement

SoFi’s launch comes as banks increasingly explore blockchain-based payment and settlement infrastructure, using different forms of digital bank money.

Wells Fargo, for example, has launched tokenized deposits for corporate payments, while BNY Mellon has explored tokenized deposits that allow clients to make payments through blockchain networks.

Major U.S. banks including JPMorgan, Bank of America, Citi and Wells Fargo are also preparing a coordinated tokenized deposit network designed to enable transfers between institutions.

JPMorgan has separately expanded its JPM Coin deposit token across blockchain networks, while HSBC has been developing tokenized deposit services for corporate clients across multiple markets.

These initiatives differ from SoFi’s model. Tokenized deposits represent commercial bank deposits on blockchain infrastructure, while SoFiUSD is a bank-issued stablecoin being used to settle transactions through Mastercard’s existing payments network.