SoFi Technologies, based in the United States, has recently partnered with Mastercard to integrate SoFiUSD, its fully reserved USD stablecoin, into Mastercard’s global payments network. This partnership aims to support the use of SoFiUSD as a settlement option for card-based transactions.
SoFiUSD stands out as the first stablecoin issued by a US nationally chartered and insured bank on a public, permissionless blockchain. The token is issued by SoFi Bank, N.A., an Office of the Comptroller of the Currency (OCC)-regulated institution, and backed 1:1 by cash reserves.
Exploring Payment Use Cases
The partnership will investigate various use cases for SoFiUSD within Mastercard’s network, focusing particularly on cross-border remittances and B2B money transfers. These transactions could benefit from the instant settlement capabilities provided by SoFiUSD.
Integration with Mastercard’s Digital Asset Platform
SoFiUSD is anticipated to be incorporated into the Mastercard Multi-Token Network (MTN), which facilitates connectivity between traditional and digital assets. This integration seeks to enhance interoperability among fiat currencies, stablecoins, and tokenized deposits.
SoFi Bank, N.A. plans to use SoFiUSD for settling its own credit and debit card transactions on the Mastercard network. Additionally, Galileo, SoFi’s technology platform, intends to offer its issuing banks and payment card clients the option of using SoFiUSD for transaction settlements.
Leaders’ Perspectives
Anthony Noto, CEO of SoFi, emphasized that this partnership is an important step in bringing bank-grade infrastructure to digital commerce. He highlighted how card issuers and acquirers can enable businesses to settle transactions instantly.
Sherri Haymond, Mastercard’s Global Head of Digital Commercialization, stated that the collaboration opens up new possibilities for regulated stablecoins at a global scale. She noted that connecting SoFiUSD settlement with Mastercard’s network enhances choice and flexibility within the payments ecosystem.
Market Context
This announcement comes amidst significant growth in stablecoin activity, with daily transactions exceeding USD 30 billion. According to recent data, stablecoin issuance grew by approximately double compared to the previous year. Surveys suggest that over half of crypto holders have used stablecoins within the last 12 months, and more than three-quarters would consider a stablecoin wallet if offered through their bank or fintech applications.
Both companies are looking into additional interoperability use cases such as programmable treasury applications, stablecoin-enabled card programs, and other cross-border payment and disbursement scenarios. These expansions will be contingent upon regulatory considerations and Mastercard network rules.
