United States-based neobank SoFi and Mastercard announced a strategic partnership to use the bank’s stablecoin, SoFiUSD, in Mastercard's global payments network.
Per a press release today, March 3, SoFiUSD will be integrated as a settlement option across Mastercard’s network, and is expected to simplify the settlement process for card issuers and acquirers.
The stablecoin will also be used across Mastercard’s digital asset platform, the Mastercard Multi-Token Network (MTN), according to the release
As The Defiant previously report, SoFi first announced the launch of SoFiUSD back in December. According to the firm’s communications, the USD-backed stablecoin is built on “a public, permissionless blockchain,” though The Defiant was unable to verify which blockchain network. The neobank said at the time that it was launching its own stablecoin as part of its broader strategy to innovate financial infrastructure for banks, fintechs, and enterprise partners.
SoFi did not not immediately respond to The Defiant’s request to clarify which blockchain the bank is using for SoFiUSD, as well as whether or not the stablecoin will integrate yield sharing — a possibility previously mentioned by SoFi’s CEO Anthony Noto at an event in October.
"By working with SoFi to enable SoFiUSD across the Mastercard network, we're expanding how trusted digital currencies can be used at global scale," stated Sherri Haymond, Mastercarcd’s global head of digital commercialization was quoted as saying in today’s release.
This partnership follows SoFi's relaunch of crypto trading services in November, after shuttering said services back in 2023, citing regulatory uncertainty, as The Defiant reported.
The move also marks a continuation of Mastercard’s ongoing efforts to integrate blockchain technology. Last June, Mastercard partnered with blockchain oracle provider Chainlink to let cardholder purchase crypto directly on-chain, as The Defiant reported at the time.
This article was generated with the assistance of AI workflows.