SoFi and Mastercard are exploring additional SoFiUSD use cases, including cross-border payments and remittances.

  • SoFi is migrating its entire $25 billion card program to blockchain-based settlement using SoFiUSD, with transactions already live on the blockchain.
  • SoFiUSD is issued by SoFi Bank, the first OCC-regulated national bank to offer customers access to cryptocurrencies. 
  • The company said the program is expected to process more than $25 billion in annualized volume through SoFiUSD.

SoFi Technologies (SOFI) shares gained in morning trade on Tuesday after the company said stablecoin settlement is now live across its debit and credit card program on Mastercard’s (MA) global payments network.

SoFi said the launch makes it the first national bank to offer stablecoin settlement across Mastercard’s network, with the company migrating its full $25 billion card program to blockchain-based settlement using SoFiUSD.

The firm added the card program is expected to process more than $25 billion in annualized volume through SoFiUSD. Transactions are already live on the blockchain.

SOFI stock gained nearly 5% in moring trading and was the top-trending ticker on Stocktwits at the time of writing. Retail sentiment around the company flipped to ‘bullish’ from ‘bearish’ territory over the past day, while chatter rose to ‘high’ from ‘normal’ levels. 

SOFI stock retail sentiment on September 22 as of 9:25 a.m. ET | Source: Stocktwits

SoFi Puts $25B Card Program On Blockchain

SoFiUSD is issued by SoFi Bank, an OCC-regulated national bank, and is fully redeemable 1:1 for U.S. dollars. The stablecoin is backed primarily by cash reserves and is available for institutional use and SoFi members.

The company said merchants do not need to hold stablecoins or build new infrastructure to receive payments. Through SoFi’s Big Business Banking platform, merchants can receive settlement funds directly into a SoFi Bank account and withdraw cash around the clock.

SoFiUSD Targets Broader Payment Use Cases

The move expands SoFi’s push into blockchain-based payments while giving Mastercard another live stablecoin settlement use case beyond pilot programs.

SoFi said it's also exploring additional uses for SoFiUSD with Mastercard, including cross-border payments and remittances. SoFi added that it is in discussions with large U.S. merchants, ranging from multinational retailers to technology platforms, about stablecoin-based settlement.

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