TLDR

  • SoFi Technologies has entered a partnership with Mastercard to permit the settlement of card transactions using its SoFiUSD stablecoin on Mastercard’s worldwide payments network.
  • SoFiUSD is the inaugural stablecoin to be issued by a US nationally chartered and insured deposit bank on a public, permissionless blockchain.
  • SoFi Bank intends to settle its own Mastercard credit and debit transactions in SoFiUSD, while Galileo will provide the same choice to its client banks.
  • The stablecoin is fully collateralized 1:1 by cash reserves and facilitates round-the-clock settlement—a feature not available through conventional banking systems.
  • The partnership will also investigate opportunities in cross-border remittances, business-to-business transfers, programmable treasury uses, and card programs powered by stablecoins.

On March 3, SoFi Technologies and Mastercard revealed a collaboration to make SoFiUSD available as a settlement method on Mastercard’s global payments network.

Launched in December, SoFiUSD is issued by SoFi Bank N.A., a depository institution insured and regulated by the OCC. It is completely backed 1:1 by cash reserves, ensuring each digital dollar is matched by a physical dollar.

This establishes SoFiUSD as the first stablecoin from a US nationally chartered and insured deposit bank operating on a public, permissionless blockchain. This represents a significant differentiation in a market filled with alternatives that face less regulation.

SOFI Stock Card

As part of the agreement, SoFi Bank aims to start settling its own Mastercard credit and debit transactions using SoFiUSD. This provides the bank with an immediate, practical application from the outset.

Galileo, SoFi’s payments technology platform, will also give its client banks and card issuers the ability to settle transactions in SoFiUSD via Mastercard’s network. Serving a broad array of fintech companies and financial institutions, Galileo could rapidly broaden the stablecoin’s adoption.

A key practical advantage is operational timing. SoFiUSD allows for settlement at any time, day or night, throughout the week—a contrast to legacy systems that are inactive during nights and weekends.

Mastercard’s Expanding Stablecoin Play

Mastercard’s Multi-Token Network (MTN) is anticipated to incorporate SoFiUSD alongside traditional currencies, tokenized deposits, and other digital assets. The MTN is Mastercard’s framework for connecting conventional finance with digital assets.

This is not Mastercard’s initial venture into stablecoins. The company collaborated with Thunes in November to enhance stablecoin wallet payouts via Mastercard Move, allowing for near-instant transfers to regulated stablecoin wallets.

In addition to transaction settlement, SoFi and Mastercard stated they will examine cross-border remittances, B2B monetary transfers, programmable treasury solutions, and card initiatives enabled by stablecoins—all pending regulatory consent and adherence to Mastercard’s network regulations.

Anthony Noto, CEO of SoFi, stated the objective is to facilitate monetary movement that is “faster, cheaper, and safer,” positioning SoFiUSD as a settlement currency for card issuers and acquirers worldwide.

Visa Is Also Moving Fast

Mastercard’s primary competitor is also advancing. Visa commenced testing cross-border settlement utilizing stablecoins in September, initiating a pilot with Circle’s USDC and EURC.

Visa subsequently broadened its backing to include four stablecoins across four blockchains, with the capability to convert into over 25 fiat currencies. In November, Visa launched direct stablecoin payments to recipients’ wallets for freelancers and marketplace platforms.

More recently, Quantoz Payments, based in the Netherlands, joined as a principal Visa member, allowing for Visa-branded debit cards in Europe that are supported by regulated e-money tokens.

At the time of reporting, the overall stablecoin market was valued at approximately $311 billion, as per DefiLlama. Transaction activity reached a peak of $969.9 billion in August 2025, with projections indicating a rise to $1 trillion monthly by December 2026.

The issuance of stablecoins in 2025 was twice that of the previous year, and daily transaction volume across stablecoin networks now stands at around $30 billion.