Mastercard Activates SoFi's Bank-Issued Stablecoin for Network-Wide Settlement
SoFi Technologies has formed a strategic partnership with Mastercard to enable card transaction settlements using its SoFiUSD stablecoin across the global payments network. The agreement allows card issuers and acquirers to use a bank-issued digital dollar for settlement, with SoFi Bank, N.A. planning to settle its own Mastercard credit and debit transactions in SoFiUSD. Additionally, SoFi’s payments technology platform, Galileo, will offer client banks the option to use the stablecoin for settlement.
Launched in December, SoFiUSD is the first stablecoin issued by a U.S. nationally chartered and insured depository institution on a public, permissionless blockchain. The digital asset is backed 1:1 by cash reserves and allows for transaction settlement 24 hours a day, seven days a week. The companies are also exploring further applications, including cross-border remittances and programmable treasury functions, contingent on regulatory approval.
Payments Giants Compete for $311B Stablecoin Market
Mastercard's integration of a bank-issued stablecoin escalates its competition with Visa for dominance in digital currency payments. Visa has been actively expanding its own stablecoin capabilities, launching a pilot in September to test cross-border settlements with Circle's USDC and later broadening support to four different stablecoins across four blockchains for conversion into over 25 fiat currencies. Visa has also initiated pilots for direct stablecoin payouts, targeting freelancers and gig economy workers.
These strategic initiatives from both payment giants aim to capture a significant share of the burgeoning stablecoin sector. The total market capitalization for stablecoins stands at approximately $311.28 billion, according to data from DefiLlama. Transaction volumes reached a record $969.9 billion in August 2025, with forecasts suggesting they could approach $1 trillion per month by the end of 2026, signaling a massive opportunity for the financial infrastructure that can support this growth.
