SoFi Moves Its Card Program to Stablecoin Settlement, Keeping Visa and Mastercard in the Loop

SoFi has started settling debit and credit card transactions with Mastercard using its SoFiUSD stablecoin. The bank is migrating its entire card program, which it expects to handle more than $25 billion in annualized volume, to this system. A SoFi spokesperson said intermediaries stay in the process; the change simply adds a blockchain-based settlement rail. Cardholders will notice nothing, while the bank settles faster behind the scenes.

Visa is heading the same way. In April, it said its stablecoin settlement pilot reached a $7 billion annualized run rate across nine blockchains, calling it a viable complement to traditional rails.

Cost and Speed of Blockchain Settlement

Varun Datta of Truth Ventures agreed that round-the-clock settlement can reduce delays and the capital firms must park in different places, especially across borders. But faster does not automatically mean cheaper. Conversion, compliance, integration and stablecoin-management costs still apply, and he wants proof of lower total costs at scale.

Local Currency Liquidity Challenges

Benkitis said dollar stablecoins can move between balance sheets in minutes, but emerging markets are harder. Local liquidity can be thin, fewer banks handle the flows, and domestic banking access is still required. As he put it, the value arrives quickly, but local liquidity finishes the payment.