SoFi Technologies has struck a deal with Mastercard to enable its SoFiUSD stablecoin as a settlement option across the card network, while Visa has separately expanded its stablecoin linked card partnership with Bridge, a Stripe company, with plans to reach over 100 countries by year end.
SoFiUSD is issued by SoFi Bank, an OCC regulated insured depository institution, giving it a structure distinct from most stablecoins. Customers holding the token on SoFi’s own platform will have it treated as a deposit token, making it eligible for interest payments and FDIC insurance. Those holding it off platform will hold a standard stablecoin, with neither benefit. The stablecoin currently carries a zero balance, with around $7 million in round trip transactions processed through custodian BitGo, indicating the infrastructure remains at an early stage.
SoFiUSD is also expected to be integrated into the Mastercard Multi-Token Network (MTN), the network’s digital asset platform designed to connect traditional money and digital assets. SoFi Bank will settle its own Mastercard credit and debit transactions in SoFiUSD.
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