SoFi Partners With Mastercard to Use Stablecoin Settlement for Card Program
(8 days ago) · 1 source · Summarized by CryptoBipto — how we make this
SoFi has reportedly moved its card program to stablecoin-based settlement in partnership with Mastercard. The arrangement is being cited as an example of how stablecoins can serve as an alternative blockchain-based settlement rail for traditional financial transactions. The deal reportedly involves approximately $25 billion in card program volume.
WHY IT MATTERS
When you pay for something with a debit or credit card, the money does not move instantly from your bank to the merchant. Behind the scenes, banks and payment networks go through a process called "settlement" — essentially confirming and transferring the actual funds, which can take one to several days. Think of it like writing a check: the store accepts it immediately, but the money takes time to actually move between bank accounts. Stablecoins are digital tokens designed to maintain a steady value, usually pegged one-to-one to a currency like the US dollar. By using stablecoins on a blockchain — a shared digital ledger — companies like SoFi and Mastercard are exploring whether this settlement process can be made faster and more efficient. This story matters because it shows that blockchain technology is being tested not just for trading cryptocurrencies, but for improving the plumbing of everyday financial transactions that millions of people already use.
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