SoFi Goes Live With Stablecoin Settlement on Mastercard, Targeting $25B+ Annual Volume
SOFI is trading near its 52-week low of $14.88 (15% above the low).
Summary
SoFi has begun settling its debit and credit card transactions using its SoFiUSD stablecoin on Mastercard's network, with the program expected to exceed $25 billion in annualized volume. The company says it is the first bank to go live with stablecoin settlement across Mastercard's network. This follows a March agreement between the two firms and builds on SoFi's crypto revenue growth reported in Q2. The launch gives SoFi a first-mover advantage in regulated stablecoin settlement and opens a new revenue stream through its Galileo platform, which will offer the settlement option to other issuing banks. Merchants can receive instant settlement funds in a SoFi Bank account and withdraw as cash around the clock at no cost, and SoFi is already in discussions with large U.S. merchants. Mastercard's involvement adds credibility and scale, and the companies are exploring cross-border payments and remittances as further use cases. SoFi shares rose on the news.
At the time of this announcement, SOFI was trading at $17.11 on NASDAQ in the Finance sector, with a market capitalization of approximately $21.9B. The 52-week trading range was $14.88 to $32.73. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: The Block.