SoFi and Mastercard have partnered to explore using SoFiUSD to settle transactions across the company’s global payments network.
The companies will examine how card issuers and acquirers could settle card transactions using SoFiUSD, SoFi’s fully reserved U.S. dollar stablecoin, enabling faster settlement for use cases such as cross-border remittances and business-to-business payments.
SoFiUSD is issued by SoFi Bank, N.A., a nationally chartered and insured deposit bank in the United States.
The stablecoin is backed one-to-one by cash and issued on a public blockchain with immediate redemption capability.
The token is also expected to be supported on Mastercard’s Multi-Token Network, a platform designed to connect traditional financial systems with digital assets.
The integration aims to enable interoperability between fiat currencies, stablecoins and tokenised deposits.
SoFi Bank is expected to settle its own credit and debit transactions processed on the network using SoFiUSD.
Galileo, SoFi’s technology platform, is also expected to be among the first to offer its payment card clients and issuing banks the option to settle transactions using the stablecoin.
Anthony Noto, CEO of SoFi, said,
“With SoFiUSD 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.
This is only the beginning of our efforts to bring SoFi’s bank-grade infrastructure to digital commerce.”
Sherri Haymond, Global Head of Digital Commercialisation at Mastercard, said,
“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.”
SoFi and Mastercard said they will explore additional use cases across stablecoins, fiat currencies and tokenised assets, including programmable treasury applications and other money movement and payout scenarios, subject to regulatory requirements and network rules.
Featured image: Edited by Fintech News Singapore, based on image by SoFi
