TLDR
- SoFi Technologies stock rose around 3% after announcing stablecoin settlement is now live on Mastercard’s global payments network.
- SoFi Bank is migrating its entire card program to blockchain-based settlement, targeting over $25 billion in annualized volume.
- SoFiUSD is the first stablecoin issued by a nationally licensed bank, fully backed 1:1 by US dollars.
- Merchants using the system can receive instant settlement into a SoFi Bank account, with free cash withdrawals at any time.
- SoFi is in active talks with large US merchants and multinationals about stablecoin-based settlement deals.
SoFi Technologies stock moved higher on Tuesday after the company went live with stablecoin settlement across Mastercard’s global payments network. SOFI was up around 3% in regular trading, with pre-market gains of 4.30%, hitting $17.70 before the open.
The move follows a partnership first announced between SoFi and Mastercard back in March. That deal has now gone fully live, with stablecoin settlement active across SoFi Bank’s debit and credit card programs.
SoFi Bank is migrating its entire card program to blockchain-based settlement using SoFiUSD, the company’s own stablecoin. The target is over $25 billion in annualized transaction volume running through the new system.
SoFiUSD carries a specific distinction. It is the first stablecoin issued by a nationally licensed US bank. SoFi Bank, NA is regulated by the OCC, and the coin is redeemable at a 1:1 ratio in US dollars, with reserves held primarily in cash.
CEO Anthony Noto was direct about what this means for merchants. “Merchants do not need to hold stablecoins, build new infrastructure, or change how they operate,” he said.
How Merchants Get Paid
Through SoFi’s Big Business Banking platform, merchants can receive settlement funds instantly into a SoFi Bank account. They can withdraw to cash at any time, around the clock, at zero cost.
That removes some of the usual friction that comes with crypto-adjacent payment systems. Merchants do not need to touch stablecoins directly or build any new tech to participate.
SoFi said it is already in talks with large US merchants, including multinational retailers and technology service platforms, about stablecoin-based settlement arrangements.
Mastercard was up around 0.41% to $570.00 in pre-market trading on Tuesday.
What Comes Next
SoFi and Mastercard have said they plan to explore further use cases for SoFiUSD beyond domestic card settlement. Those include international payments, remittances, and other money movement.
The system also opens the door for card issuers, acquirers, and merchants to manage settlement and liquidity differently through existing payments infrastructure.
SoFi confirmed that stablecoin settlement is already active in both its debit and credit card programs, with transactions running on the blockchain now.
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