SoFiUSD On-Chain Card Settlement Live; $25B Run-Rate Projected

SoFi Bank and Mastercard have moved SoFiUSD into production as a settlement option for the bank’s debit and credit card program. The companies reported blockchain transactions in September while the full migration remains in progress and no completion date has been given. SoFi projects more than $25 billion in annualized card-program volume after the migration but has not disclosed how much has already been settled with the token.

Cardholders continue using existing cards while settlement for participating transactions can route through SoFiUSD behind the scenes. SoFi’s September release describes live on-chain transactions for the card program but does not provide a share or dollar amount of transactions already settled in the token.

SoFi describes a merchant experience that does not require holding the stablecoin or adding new infrastructure. Businesses using SoFi’s Big Business Banking platform can receive settlement proceeds immediately in a SoFi Bank deposit account and access cash around the clock, according to the bank’s product description. In that arrangement, the merchant’s usable balance is held as dollars in a bank account while the stablecoin moves value through settlement.

SoFi’s September statement lists no outside merchant settlement customers as live and notes ongoing discussions with large U.S. merchants. An earlier platform announcement outlined features such as business deposit accounts, continuous fiat and token transfers, and mint-and-burn conversion as platform capabilities.

SoFi Bank, a nationally chartered bank regulated by the Office of the Comptroller of the Currency, issues SoFiUSD and describes the token as intended to be redeemable one-for-one with the dollar. The issuer’s terms limit direct redemption to approved SoFi customers under separate agreements and permit fees, conditions, delays or suspensions in specified circumstances. SoFiUSD is not a bank deposit and is not covered by FDIC or SIPC insurance.

The token’s reserve policy is described as primarily cash but also allows cash equivalents and other legally permitted liquid instruments, without a fixed public composition at every point in time. The token’s terms also bar acquisition or use by people or entities subject to UK or European Economic Area laws.

Mastercard has outlined a broader settlement menu that includes multiple regulated stablecoins and other fiat timing options and has reported early on-chain use of other coins in select markets. Visa has reported that stablecoin settlement volume reached an annualized run rate above $20 billion; that figure measures observed stablecoin settlement activity.

A working blockchain route for card settlement is in place. SoFi has not provided data on actual token-settled volume, outside-merchant adoption or measured timings for when merchants receive spendable cash, leaving those aspects unquantified.