SoFi tie-up shows stablecoins can provide alternative blockchain settlement rail
Stablecoins are starting to be used for card settlement behind existing payment networks, shifting settlement from traditional banking rails to blockchain without changing how consumers pay. SoFi is migrating its card program to settle Mastercard transactions with its SoFiUSD stablecoin, aiming to process over $25 billion in annualized volume. Visa is also piloting onchain settlement and says it is a complement to traditional rails. The main change is faster, always-on settlement and potentially better liquidity management, especially for cross-border payments. The shift does not remove intermediaries: Visa, Mastercard, banks, and network rules still remain in place. Businesses and consumers may not interact with stablecoins directly. The economic benefits are not automatic. Faster settlement may reduce idle capital and delays, but conversion, compliance, integration, and stablecoin-management costs can offset gains. In many markets, local currency liquidity and domestic banking access are still needed to complete payments.
