- SoFiUSD can now settle transactions across Mastercard’s global network.
- The Galileo platform will offer clients the option to pay and settle in the stablecoin.
- Mastercard and SoFi aim to expand interoperability between stablecoins, fiat, and tokenised assets.
SoFi Technologies has reportedly teamed up with the payments giant, Mastercard. This move allows SoFi Bank’s fully reserved US dollar stablecoin SoFiUSD to be used across Mastercard’s global network.
This move makes SoFiUSD the first stablecoin from a US nationally chartered bank to operate on a public blockchain. As part of this move, businesses and consumers get a new way to settle transactions securely and quickly.
SoFiUSD Now Available for Mastercard Payments
According to a press release released earlier today, SoFi Technologies has expanded its partnership with Mastercard. With this move, the bank intends to let users use its USD-backed SoFiUSD stablecoin across Mastercard.
Via SoFi’s Galileo platform, clients and issuing banks will now have the option to settle payments using SoFiUSD. Mastercard’s Multi-Token Network will support the stablecoin, helping bridge digital assets with traditional money and opening the door to faster transactions. The move will also allow users to engage in cross-border transfers and B2B payments.
Commenting on this strategic Mastercard partnership, SoFi CEO Anthony Noto stated,
“SoFiUSD is at the heart of our strategy to make it faster, cheaper, and safer for people around the world to move money. With SoFiUSD as a settlement currency across Mastercard’s network, card issuers and acquirers can more easily enable the millions of businesses they serve around the globe to instantly settle transactions, 24 hours a day, 7 days a week. This is only the beginning of our efforts to bring SoFi’s bank-grade infrastructure to digital commerce.”
Times of Blockchain previously reported SoFi Bank’s launch of its SoFiUSD stablecoin. The move marked a major milestone for the financial institution, with SoFiUSD becoming the first USD-backed crypto launched by a national bank.
What SoFiUSD Brings to the Table?
Notably, the two companies are expected to work together to let banks and payment providers settle card transactions using SoFiUSD. This offers faster payment options for Mastercard users.
This could also speed up money transfers for things like cross-border remittances and business-to-business payments.
The stable token will also be supported on Mastercard’s Multi-Token Network (MTN), a platform that links traditional money with digital assets. This integration is designed to make it easier to use different currencies, stablecoins, and tokenized deposits, giving users more flexibility and choice.
Additionally, SoFi Bank, N.A. plans to use the token to settle its credit and debit card transactions through the Mastercard network. SoFi’s technology platform, Galileo, will be among the first to give its card clients and their banks the option to settle payments using the stablecoin.
“By working with SoFi to enable SoFiUSD across the Mastercard network, we’re expanding how trusted digital currencies can be used at global scale,” stated Mastercard’s Sherri Haymond. She added,
“Bringing stablecoin settlement on our network will connect regulated stablecoins with the reliability, security, and reach that consumers, businesses and financial institutions expect. And this effort expands choice and flexibility across the payments ecosystem in how people pay or get paid.”
Together, the platforms are also looking at other ways to connect stablecoins, traditional money, and tokenized assets. This could include new treasury solutions, faster payouts, and other transaction options.
