SoFi Moves $25B Card Program to Stablecoin Settlement
SoFi Bank shifts its $25 billion annualized card program to blockchain settlement via Mastercard, starting with enterprise clients.
Key points
- SoFi Bank moves its $25 billion annualized card program to blockchain-based settlement via Mastercard.
- Merchants receive instant settlement in SoFi Bank accounts and convert to cash at zero cost.
- SoFi stock fell 1.57% to $16.89 on Wednesday following the announcement.
SoFi Technologies shares fell 1.57% to $16.89 on Wednesday. The drop follows Tuesday’s announcement of a new stablecoin settlement feature.
The company is moving its $25 billion annualized card program onto blockchain-based clearing. This makes SoFi the first nationally chartered bank to use Mastercard’s global infrastructure for live stablecoin settlement.
Enterprise Settlement Mechanics
CEO Anthony Noto said the feature is now live for business clients. Merchants do not need to hold stablecoins or change payment hardware.
Businesses receive funds instantly in a SoFi Bank account. They can convert these funds to cash around the clock at zero cost.
Revenue From Galileo Platform
SoFi will extend this digital settlement architecture to third-party institutions. This expansion uses its Galileo technology division to serve major U.S. retailers.
This creates an additional high-margin fee revenue channel. The company aims to leverage this infrastructure to engage more large retail partners.
Market Reaction to News
Shares traded lower on Wednesday despite the operational milestone. According to Benzinga, the stock consolidated recent gains after rallying on Tuesday's news.
