SoFi Technologies has secured a landmark partnership with Mastercard, enabling the settlement of card transactions in SoFiUSD, the first stablecoin issued by a US nationally chartered and insured deposit bank on a public, permissionless blockchain. The agreement allows SoFi Bank N.A. to settle its own credit and debit transactions in the digital dollar, while the bank's payments platform, Galileo, will offer client issuers the option to utilize the asset for settlement across Mastercard's global network.
SoFiUSD, which launched in December, is backed 1:1 by cash reserves held at SoFi Bank, an OCC-regulated insured depository institution. Under the new framework, the stablecoin will operate on Mastercard's Multi-Token Network, running alongside fiat currencies, tokenized deposits, and other digital assets. The collaboration unlocks 24-hour, seven-day-a-week transaction settlement capabilities, a significant departure from traditional banking hours that operate only on business days. Beyond domestic card settlements, the companies intend to explore cross-border remittances, business-to-business transfers, programmable treasury applications, and stablecoin-enabled card programs, contingent upon regulatory approval and network compliance.
Mastercard and Visa Race to Integrate Digital Dollars
The SoFiUSD integration marks a pivotal escalation in the competition between the world's two largest payment processors to embed stablecoins into their core infrastructure. Mastercard's move follows a November partnership with Thunes to expand stablecoin wallet payouts through Mastercard Move, facilitating near real-time transfers to regulated wallets via Thunes' Direct Global Network.
Competitor Visa is simultaneously broadening its digital asset capabilities. In September, Visa initiated testing for stablecoin-based cross-border settlement using Circle's USDC and EURC. The network subsequently expanded support to four stablecoins across four distinct blockchains, enabling conversion into more than 25 fiat currencies. In November, Visa introduced a Visa Direct pilot allowing businesses to execute direct stablecoin payouts to freelancers and marketplaces, bypassing traditional bank transfer rails. This expansion extended to Europe last month when Netherlands-based Quantoz Payments became a principal Visa member, authorizing the issuance of Visa-branded debit cards backed by regulated e-money tokens.
Transaction Volumes Approach Trillion-Dollar Threshold
The strategic pivot by both payment giants coincides with a massive surge in stablecoin utility. Total stablecoin market capitalization stands at approximately $311.28 billion. More critically, transaction volumes reached a record $969.9 billion in August 2025. Forecasts indicate that monthly transaction volumes will near $1 trillion by December 2026.
This data underscores a structural shift in global liquidity. The ability to settle transactions instantly, regardless of weekends or holidays, addresses a persistent inefficiency in the legacy financial system. By anchoring the stablecoin to a US nationally chartered bank with federal insurance, SoFiUSD introduces a layer of regulatory clarity and counterparty risk mitigation that distinguishes it from purely algorithmic or non-bank-issued tokens. The integration into Mastercard's network effectively bridges the gap between the regulated banking sector and the permissionless blockchain economy, allowing issuers and acquirers to settle card transactions using a digital dollar without sacrificing the security of a federally insured deposit institution.
As the market approaches the projected $1 trillion monthly volume threshold, the infrastructure provided by Mastercard and Visa will likely determine which stablecoins achieve dominant liquidity. The convergence of bank-backed issuance, major processor integration, and record transaction velocity suggests that stablecoins are transitioning from speculative assets to essential settlement layers for the global economy.
Source: CoinTelegraph | Analysis by Rumour Team