Merchants won’t need to hold stablecoins as SoFi moves its $25 billion card program to SoFiUSD settlement
- SoFi says merchants won’t need to hold stablecoins or change how they operate to receive SoFiUSD settlement.
- SoFi Bank is moving its entire $25 billion card program to SoFiUSD settlement on Mastercard’s network.
- Merchants can withdraw settlement funds as cash around the clock at zero cost, SoFi says.
SoFi says merchants won’t have to hold stablecoins, create new infrastructure or modify their business practices as it transitions its $25 billion card program to SoFiUSD settlement.
The bank went live on Tuesday, settling debit and credit card transactions in the stablecoin on Mastercard’s global payment network.
Big Business Banking pays out cash around the clock at zero cost
“Merchants do not need to hold stablecoins, build new infrastructure, or change how they operate,” said Anthony Noto, CEO of SoFi. With SoFi’s Big Business Banking platform, any merchant can instantly receive settlement funds in a SoFi Bank account.
Noto says those funds can be withdrawn as cash, free of charge, 24/7.
“That means businesses have faster access to their money via the speed of blockchain, with the safeguards of a bank,” he said.
SoFi is in active discussions with major US merchants to settle using stablecoins. It says merchants range from big multinational retailers to technology service platforms.
Mastercard’s network goes live six months after the March deal
SoFi Bank is converting its entire $25 billion card program to settlement in SoFiUSD, which it says is the first stablecoin issued by a nationally chartered bank. The companies said transactions are live on the blockchain.
SoFi says it’s the first national bank to go live with stablecoin settlement across Mastercard’s network. The launch comes after the two companies announced a partnership in March.
“Stablecoins become meaningful when they solve real problems that businesses face every day,” said Sherri Haymond, Mastercard’s Global Head of Digital Commercialization.
SoFiUSD is issued by SoFi Bank, N.A., a national bank overseen by the OCC. The company said it is redeemable 1:1 for US dollars and backed by reserves of mostly cash.
Kraken listed SoFiUSD earlier this month, Cryptopolitan reported. In June, Mastercard opened card settlement to SoFiUSD and other stablecoins.
SoFi and Mastercard will also look into cross-border payments and remittances via SoFiUSD on the network.
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FAQs
What is SoFiUSD and who issues it?
SoFi Bank, N.A., an OCC-regulated national bank, issues SoFiUSD, which is redeemable 1:1 for US dollars.
Do merchants have to hold stablecoins to get paid?
No. Noto said merchants do not need to hold stablecoins, and they can withdraw settlement funds as cash around the clock at zero cost.
How big is the card program moving to stablecoin settlement?
SoFi is migrating its entire $25 billion card program to SoFiUSD settlement across Mastercard's network.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Randa Moses
Randa Moses is an editor and reporter at Cryptopolitan covering tech, AI, robotics, crypto, scams, and hacks. She has worked in the crypto space since 2017. She held roles at Forward Protocol, AmaZix, and Cryptosomniac. Randa holds a degree in Electrical and Electronics Engineering from the University of Bradford.
