SoFi Technologies (SOFI) has partnered with Mastercard (MA) to enable settlement of the former’s U.S. dollar stablecoin across the latter’s payments network.
SoFi-USD is the San Francisco-based financial services provider’s fully reserved U.S. dollar stablecoin, the first to be offered by a U.S. nationally chartered and insured deposit bank on a public, permissionless blockchain.
Both companies will explore how issuers and acquirers can settle card-based transactions with Mastercard using SoFi-USD.
Furthermore, the stablecoin is expected to be supported across Mastercard’s multi-token network, a digital asset platform that helps connect traditional money with digital assets.
Additionally, the unit SoFi Bank is expected to settle its credit and debit transactions powered by the Mastercard network in SoFi-USD. The Galileo technology platform is expected to be among the first to offer its clients and their issuing banks the choice to settle transactions in the stablecoin.
“With SoFi-USD as a settlement currency across Mastercard’s network, card issuers and acquirers can more easily enable the millions of businesses they serve around the globe to instantly settle transactions, 24 hours a day, 7 days a week,” said SoFi CEO Anthony Noto.
“Bringing stablecoin settlement on our network will connect regulated stablecoins with the reliability, security, and reach that consumers, businesses, and financial institutions expect. And this effort expands choice and flexibility across the payments ecosystem in how people pay or get paid,” said Sherri Haymond, global head of digital commercialization at Mastercard.
SOFI shares were -1.58% to $18.10 Tuesday pre-market, while MA was -1.22% to $514.62.