SoFi's Stablecoin Goes Live Across Mastercard's Network

SoFi Technologies shares rose 1.77% intraday after the company and Mastercard said stablecoin settlement is now live across SoFi Bank's debit and credit card program. As part of the launch, SoFi is migrating its entire $25 billion card program to settlement in SoFiUSD, which it calls the first stablecoin issued by a nationally chartered bank, with transactions running on the blockchain as of today.SoFi says businesses don't need to hold stablecoins or build new infrastructure: through its Big Business Banking platform, a merchant can receive settlement funds instantly in a SoFi Bank account and withdraw to cash around the clock at no cost. SoFiUSD is issued by SoFi Bank, an OCC-regulated national bank, and is redeemable one-to-one for dollars against reserves held primarily in cash, though it isn't FDIC-insured and can lose value.The company said it's in active talks with large US merchants, from multinational retailers to technology platforms, about stablecoin settlement, and that it and Mastercard will explore further uses on the network including cross-border payments and remittances.