SoFi Bank and Mastercard have begun live settlement using SoFiUSD for the bank’s debit and credit card programme, turning a plan announced in March into a working blockchain-based system.
SoFi says the programme is expected to reach more than $25bn in annualised card volume once the migration is complete. However, the companies have not disclosed how much has already been settled in SoFiUSD, meaning the projected figure should not be treated as the stablecoin’s current transaction volume.
The migration is still under way and no completion date has been given. Existing SoFi cards remain usable, while the settlement process operates behind the familiar card payment experience. SoFi says merchants can receive dollars in a bank account without holding SoFiUSD, and consumers are not required to obtain cryptocurrency at checkout.
For merchants using SoFi’s Big Business Banking platform, settlement funds can be paid directly into a SoFi Bank account, with access to cash around the clock. SoFi says this removes the need for businesses to manage a stablecoin wallet.
The companies have not provided a measured comparison of settlement speed or cost before and after the change. Nor has the September announcement identified a live external merchant using the system, with discussions with large US merchants continuing.
SoFi’s April announcement for the platform listed business deposit accounts, continuous fiat and token transfers, and mint-and-burn conversion as planned capabilities. In the model now described, the stablecoin transfers value between the parties while the merchant’s usable balance remains dollars in a bank account.
Different rights for cash recipients and token holders
A merchant receiving dollars in a bank account does not hold the same claim as a person who receives SOFID on-chain. SoFi Bank, a nationally chartered bank regulated by the Office of the Comptroller of the Currency, issues SoFiUSD and says it is designed to be redeemed one for one for dollars.
Under SOFID’s terms, direct redemption is available only to approved SoFi customers with separate agreements and is subject to conditions and fees. Receiving the token on-chain does not automatically provide that issuer claim, and redemption may be delayed or suspended in specified circumstances.
SoFiUSD is not a bank deposit and does not have FDIC or SIPC insurance, according to SoFi’s product disclosure. It may also face delay, disruption or permanent loss. SoFi’s September release says the reserves are primarily cash, while the issuer’s terms also permit cash equivalents and other legally allowed liquid instruments. No fixed reserve breakdown was provided.
People and entities located in, resident in or subject to UK or European Economic Area laws are excluded from acquiring, holding, transferring or using SOFID. That restriction applies to token participation, not necessarily to ordinary card purchases in those markets.
Mastercard said in June that its wider settlement strategy would include regulated stablecoins and additional fiat timing options. It cited USDC activity in selected markets and named Paxos-issued coins, RLUSD and SoFiUSD for planned support across several networks, without disclosing the eventual share of traffic for each token or confirming that every planned pairing is live.
Visa reported on Sept. 8 that its stablecoin settlement volume had exceeded a $20bn annualised run rate. That figure measures stablecoin settlement activity, whereas SoFi’s $25bn projection relates to future card-programme volume after migration. The figures therefore cannot be used to compare current stablecoin volumes.
The live SoFiUSD route confirms that the March proposal is operating. Its broader commercial impact will depend on disclosed token-settled volume, external merchant adoption and evidence of improved access to spendable cash.
