SoFi Bets $25 Billion on Putting Stablecoins Behind the Card Swipe
Consumers and merchants were supposed to be the silver bullet driving scalable digital asset adoption. The cryptocurrency industry is mature enough for that to have already happened by now, and it hasn’t. However, news from Mastercard and SoFi Technologies announced Tuesday (Sept. 22) showed that the FinTech and payments industry isn’t giving up on digital […] The post SoFi Bets $25 Billion on…
Two major companies, SoFi Technologies and Mastercard, are collaborating on a new initiative to utilize stablecoins for payment processing. This collaboration involves SoFi Bank migrating its entire $25 billion card program to use SoFiUSD, a U.S. dollar-backed stablecoin, in conjunction with Mastercard's payment network. This move signifies a shift in the financial services industry's approach to digital assets, as it is no longer focusing on consumer adoption but rather on replacing the underlying infrastructure of card payments with stablecoin settlement.
The decision to utilize stablecoins for this purpose is based on the belief that they can offer faster access to cash and potentially reduce liquidity requirements. However, the success of this initiative relies on the ability of financial institutions to manage the tokenized money effectively, without requiring significant changes to consumer, merchant, and financial institution workflows.
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