SoFi Bank goes live with stablecoin settlement across Mastercard network

SoFi Bank is moving its entire card program to blockchain-based settlement. By using its own stablecoin (SoFiUSD) on the Mastercard network, the bank is bypassing traditional, slower banking rails. For retailers and service providers, this signals a major shift in how transactions are processed and funded behind the scenes. While you might not see a change in your terminal today, this technology aims to make payment settlement much faster and cheaper. Historically, when a customer swipes a card, it takes days for the funds to move through various intermediary banks before reaching a merchant's account. By using stablecoins, SoFi can move value almost instantly. This reduces the risk of fraud and lowers the overhead costs associated with legacy banking systems. As more major lenders like SoFi and Mastercard adopt these digital assets, we expect to see a ripple effect. This could eventually lead to lower processing fees for merchants and more flexible, real-time financing options for consumers. It bridges the gap between traditional credit products and the speed of digital currency, making the entire ecosystem more efficient for the businesses that rely on these payment networks.

Source: Finextra — Lending

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