A $25 Billion Reason Why SoFi Stock In Focus

SoFi Technologies shares climbed about 1% Tuesday after the company said its bank has begun using stablecoins to settle transactions across its Mastercard card network.The rollout makes SoFi Bank's entire $25 billion card portfolio eligible for settlement through SoFiUSD, the company's stablecoin. Mastercard (MA) is supporting the payment infrastructure behind the program.The arrangement is designed to let participating merchants receive settlement funds in a SoFi Bank account and convert them to cash without requiring merchants to maintain stablecoin balances or build separate systems. SoFi said it is also in discussions with large U.S. merchants about additional stablecoin settlement arrangements.Mastercard shares were up about 0.4% in premarket trading, below the threshold for a notable market move.The launch expands SoFi's push into digital-asset payments beyond traditional banking services. Stablecoins are digital tokens designed to maintain a relatively stable value, often by being linked to a fiat currency such as the U.S. dollar. The company's move could give merchants another settlement option as financial institutions explore blockchain-based payment systems.