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SoFi Technologies has become the first U.S. nationally chartered bank to settle card payments in a stablecoin. On September 22, SoFi and Mastercard announced that stablecoin settlement is live across SoFi Bank, N.A.’s entire debit and credit card program on Mastercard’s global payments network, with transactions already running on blockchain rails. The program is expected to process more than $25 billion in annualized volume through SoFiUSD.
SoFiUSD is the first stablecoin issued by a nationally chartered U.S. bank. SoFi Bank is supervised by the Office of the Comptroller of the Currency, and each token is redeemable one-to-one for U.S. dollars, backed primarily by cash reserves. The company stresses that SoFiUSD is not a bank deposit: it carries no FDIC insurance and is not legal tender. The move turns a partnership the two companies announced on March 3 into live production, and SoFi says its Galileo platform will extend the capability to other card issuers. Barron’s reported the announcement on September 22, noting SoFi shares rose 1.3% while Mastercard slipped 1.6% on a down day for the broader market.
Why it matters: this is a real production deployment of a bank-issued stablecoin inside the existing card system, not a pilot. Settlement moves onto blockchain infrastructure while merchants change nothing on their end — they receive funds in a SoFi Bank account and can convert to cash around the clock. For investors, it is the clearest sign yet that stablecoins are shifting from crypto-native use cases into mainstream financial plumbing, right as regulators are writing the rulebook. The Federal Reserve has already proposed GENIUS Act reserve and capital rules for stablecoin issuers, and Mastercard has been building its own rails — including its $1.8 billion March acquisition of stablecoin infrastructure provider BVNK. Banks that can turn settlement speed into a commercial advantage may now have a template to copy.
What to watch: whether Galileo brings other issuing banks onto SoFiUSD settlement, how the Fed’s GENIUS Act rules treat bank-issued coins once finalized, and whether SoFi follows through on its stated plans for interest-bearing tokenized deposits and 24/7 international transfers. SoFi’s investor day commentary on transaction economics — and whether competitors like Visa respond with their own bank-issued settlement pushes — will show how durable this first-mover edge is.
Related reading: Fed Proposes GENIUS Act Stablecoin Reserve and Capital Rules
Sources:
– https://www.barrons.com/articles/sofi-stock-stablecoin-crypto-banks-198153fe
– https://fintech.global/2026/09/23/sofi-brings-stablecoin-settlement-to-mastercard-network/
– https://marketwirenews.com/stock/sofi/news/sofi-becomes-first-national-bank-to-go-live-with-sta-6086213437084317.htmlWould you trust a bank-issued stablecoin to settle your card payments behind the scenes, or does the FDIC exclusion make you pause?
Auto-posted by the Bull Lounge news desk. Not financial advice.
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