Mastercard Settles $34 Trillion Card Transactions with Stablecoin

Mastercard is partnering with SoFi to settle card transactions worth an annualized $25 billion (approximately 34 trillion won) using stablecoins. The settlement utilizing SoFi's own dollar stablecoin, SoFiUSD, has begun in SoFi's debit and credit card program. The annualized transaction volume for this program is expected to exceed $25 billion and is currently being processed on the blockchain. Instead of consumers directly paying card bills with stablecoins, the structure involves using stablecoins during the settlement process between financial institutions after card transactions. SoFiUSD is issued by SoFi Bank and can be redeemed on a 1:1 basis with the US dollar. Through this case, Mastercard has connected existing card payment infrastructure with bank-issued stablecoins. Sherri Haymond, Mastercard's Executive Vice President of Digital Partnerships, stated that they are applying regulated stablecoin settlements in real operational environments. Anthony Noto, CEO of SoFi, explained that merchants can receive settlement funds immediately through SoFi's corporate finance platform and withdraw cash 24 hours a day.