• Home
• Technology

SoFi Technologies has expanded its strategic partnership with Mastercard to enable the use of the SoFiUSD stablecoin as a settlement tool across Mastercard’s global payments network, marking a significant step toward integrating regulated digital assets into the traditional financial infrastructure.

Under the agreement, issuing banks and acquiring institutions will be able to settle card transactions using SoFiUSD. This will allow faster settlements on a 24/7 basis while reducing costs associated with cross-border payments and corporate transfers.

As part of the initiative, SoFi Bank plans to settle a portion of its credit and debit transactions processed through the Mastercard network using the new stablecoin, reflecting a shift from technical collaboration to real-world implementation within a regulated banking ecosystem.

SoFiUSD is a fully cash-backed stablecoin with a 1:1 reserve ratio and instant redeemability. It is issued on the Ethereum network, enabling near-instant settlements with high operational efficiency. The stablecoin is also expected to be supported through Mastercard’s Multi-Token Network, designed to connect traditional payment systems with digital assets.

Meanwhile, Galileo Financial Technologies plans to offer its card-issuing clients the option to settle transactions using SoFiUSD. The platform is also exploring additional use cases, including programmable treasury solutions and new models for money transfers and payout disbursements, within applicable regulatory frameworks.

The move comes as the stablecoin market continues to expand rapidly, with daily trading volumes reaching tens of billions of dollars and growing institutional interest in incorporating these assets into operational payment infrastructures to enhance efficiency and reduce settlement times.

Overall, the initiative reflects a broader strategic push by SoFi Technologies and Mastercard to expand the role of regulated digital currencies within global payment networks, offering businesses and financial institutions faster and more flexible options for managing cash flows in an increasingly digital financial environment.