SoFi announced that it will transition its full suite of debit and credit cards to settle transactions on a blockchain using the SoFiUSD stablecoin. The bank expects the program to handle more than $25 billion in annualized volume, routing payments through Mastercard’s network while the underlying settlement occurs on-chain.
How the new rail works alongside existing players
The change does not cut out Visa, Mastercard or the banks that issue cards. Instead, the blockchain layer replaces the traditional banking conduit that reconciles balances between participants. Cardholders will continue to swipe or tap as usual; the difference lies in the back-office process, where the stablecoin enables near-instant settlement of obligations.
Industry momentum: Visa’s parallel experiment
Visa has been testing a comparable model, reporting a $7 billion annualized run rate for its stablecoin settlement pilot and extending support to nine blockchain networks. Both firms describe the approach as a complement to, rather than a replacement for, conventional settlement infrastructure.
Expert perspective on disintermediation
Industry voices caution against labeling the development as full disintermediation. Gravity Team’s co-founder emphasizes that the core participants—card networks and banks—remain integral, handling transaction calculations and participant interactions. As a result, businesses may not need to engage directly with stablecoins; they will simply benefit from the availability of faster settlement when required.
Potential economic advantages and caveats
Venture capitalist Varun Datta notes that continuous, real-time settlement could lessen the need for firms to hold large cash buffers across jurisdictions, especially for cross-border payments. However, speed alone does not guarantee lower overall costs. Expenses related to currency conversion, regulatory compliance, system integration and stablecoin management still affect the total cost of a payment.
Liquidity challenges in emerging markets
While dollar-denominated stablecoins can move between balance sheets within minutes, completing a transaction in a local currency often requires additional liquidity. In markets where domestic banking channels are thin, the stablecoin must be converted, meaning the speed advantage may be offset by the need to access local funds.
Why it matters
The adoption of blockchain-based settlement by a major consumer-finance institution demonstrates that stablecoins are moving beyond niche use cases toward mainstream payment infrastructure. By preserving existing intermediaries while enhancing settlement speed, the model offers a pragmatic path for gradual integration of crypto-native technologies into everyday financial operations. The evolution could reshape liquidity management for corporations and influence how payment networks evolve their own blockchain strategies.
