SoFi moves entire card program to blockchain settlement with its SoFiUSD stablecoin

SoFi announced that it will settle all debit and credit card transactions on a blockchain using its own SoFiUSD stablecoin. The bank expects the program to handle more than $25 billion in annualized volume.

How the settlement shift works

Customers will continue to use their SoFi‑issued cards as usual. Behind the scenes, the settlement of each transaction will be recorded on‑chain, allowing SoFi to reconcile obligations faster than with traditional banking rails. Visa and Mastercard remain part of the process; the blockchain layer replaces only the inter‑bank settlement step.

Industry perspective

Experts say the move does not constitute full disintermediation. "Visa and Mastercard are still there. The banks are still there," said Martins Benkitis, CEO of Gravity Team. The stablecoin acts as a bridge, enabling quicker settlement while the existing card networks continue to manage transaction routing and consumer experience.

Potential benefits and challenges

• Speed: Settlement can occur in minutes rather than days, reducing the need for firms to hold large capital buffers across jurisdictions.
• Cost considerations: Faster settlement does not automatically lower end‑to‑end payment costs. Conversion, compliance, integration and stablecoin‑management fees remain.
• Liquidity needs: While dollar‑denominated stablecoins move quickly between balance sheets, completing payments in local currencies still requires sufficient local liquidity and access to domestic banking systems.

Broader context

Visa has reported a $7 billion annualized run rate for its own stablecoin settlement pilot, indicating growing interest in blockchain‑based settlement as a complement to traditional rails. Federal Reserve researchers note that stablecoins could reshape payment economics without eliminating banks.