SOFI Technologies shares gained nearly 5% in morning trading on Tuesday following the announcement of stablecoin settlement going live across its debit and credit card program on Mastercard's global payments network. The stock was the top-trending ticker on Stocktwits at the time of writing, with retail sentiment around the company flipping to 'bullish' from 'bearish' territory over the past day. Market chatter rose to 'high' from 'normal' levels as investors responded positively to the blockchain payment milestone.
SoFi Technologies has successfully moved its entire $25 billion card program to blockchain-based settlement using SoFiUSD, marking a significant milestone in stablecoin adoption. According to a joint announcement from SoFi and Mastercard on September 22, debit and credit card transactions under the SoFi Bank program are now settling with SoFiUSD, making the token part of Mastercard's live payment infrastructure six months after the companies announced their partnership. As reported by the companies, this makes SoFiUSD the first stablecoin issued by a nationally chartered bank to be used for settlement across Mastercard's network, with the card program expected to process more than $25 billion in annualized volume through SoFiUSD.
The settlement system operates without requiring merchants to hold SoFiUSD or build separate blockchain infrastructure. According to SoFi, transactions are already live onchain, with settlement reaching SoFi Bank accounts through the company's Big Business Banking platform. Merchants can then withdraw funds as cash around the clock without withdrawal fees, providing 24/7 access to settlement funds instead of being tied to traditional banking hours. SoFi CEO Anthony Noto emphasized that the rollout took stablecoin settlement from concept to live product in six months, materially improving how money moves for businesses.
SoFiUSD is issued by SoFi Bank, N.A., a nationally chartered bank regulated by the Office of the Comptroller of the Currency, making it the first OCC-regulated national bank to offer customers access to cryptocurrencies. The stablecoin is redeemable 1:1 for U.S. dollars, with reserves held primarily in cash, according to the company. The token operates on both Ethereum and Solana blockchain networks and is available to institutions and SoFi members for settlement, payments and other financial applications. SoFi had previously expanded access in May, making the token available inside the company's consumer app to nearly 15 million members.
SoFi indicated the settlement launch is not intended to remain limited to SoFi Bank transactions. The company is in discussions with large U.S. merchants over stablecoin-based settlement arrangements, ranging from multinational retailers to technology service platforms. According to the announcement, SoFi and Mastercard plan to examine additional uses for SoFiUSD across Mastercard's network, including cross-border payments, remittances and other forms of money movement. The companies are also exploring merchant settlement, cross border payments and remittances as they assess where SoFiUSD can be used across Mastercard's global network, with SoFi specifically mentioning additional use cases for cross-border payments and remittances.
