SoFi Bank launches stablecoin settlement on Mastercard network

SoFi Bank has launched live stablecoin settlement across Mastercard’s global payments network, enabling the bank to settle Mastercard transactions using tokenized fiat stablecoins on a distributed ledger.

The service links SoFi Bank’s regulated banking infrastructure with Mastercard’s payment rails to move settlement from traditional interbank processes to token-based transfers. SoFi announced the capability as part of an effort to speed settlement and provide continuous, near-instant finality for payment flows routed through Mastercard.

Under the arrangement, transaction obligations that normally clear through correspondent banking and overnight cycles can be settled using stablecoins issued and managed within SoFi Bank’s regulated framework and integrated with Mastercard systems. The setup is designed to shorten the time between authorization and final settlement.

The live launch applies across Mastercard’s global network. Participating merchants and banks connected to Mastercard can use stablecoin settlement when both the merchant acquirer and the issuing bank opt in. The service covers domestic and cross-border transactions that may benefit from faster reconciliation and 24/7 settlement compared with conventional batch clearing windows.

Technically, settlement occurs when tokenized funds controlled by SoFi Bank are transferred on a distributed ledger to satisfy payment obligations presented through Mastercard’s network. Mastercard validates the transaction flow and records the settlement event on its payment platform while SoFi provides the fiat backing and custody arrangements for the stablecoins. Compliance controls, transaction monitoring and consumer protections remain in place under the integration.

Adoption depends on partner banks, acquirers and merchants choosing to opt into the tokenized option. Firms that do not adopt will continue to use existing fiat settlement processes. Both companies noted the offering complies with applicable payment and anti-money-laundering rules and that identity and sanctions screening apply to tokenized flows in the same way as conventional transfers.

Token-based settlement has been tested in pilots and sandbox environments for several years. The launch represents a commercial deployment tied to a global card network and a regulated U.S. bank. Regulators and industry participants are continuing to evaluate operational and compliance frameworks for broader use of stablecoins in traditional payments.

SoFi Bank is the chartered bank arm of the consumer finance firm, providing deposits, payment and lending services under U.S. banking rules. Mastercard operates a global payment network connecting issuers, acquirers and merchants across multiple jurisdictions. The rollout follows growing interest among banks and payment providers in tokenized settlement and ongoing regulatory discussions about stablecoins and other digital assets.