Alliance with SoFi shows stablecoins can offer an alternative blockchain-based settlement system - TradingView
Article excerpt
Highlighted: the sentence this signal was extracted from
Stablecoins are increasingly being used to settle payments behind existing card networks, allowing money to be moved 24/7 without changing how consumers pay. But, instead of excluding Visa, Mastercard, or banks from the process, the technology is beginning to replace a more specific part of the payments infrastructure: the traditional banking systems used to settle obligations between participants. That shift was in the spotlight this week, when SoFi began settling debit and credit card transactions with Mastercard using its SoFiUSD stablecoin. The bank said it is moving its entire card program - which it expects to process over 25 billion dollars in annualized volume - to this system. The change does not remove intermediaries from the card settlement process, a SoFi spokesperson told Cointelegraph, but it provides an alternative blockchain-based settlement system. For customers, the change largely happens behind the scenes. SoFi cardholders will continue to use their debit and credit cards as normal, while moving the process on-chain allows the bank to settle transactions faster, according to the spokesperson. Visa is also moving settlement on-chain. In April, the company said its stablecoin settlement pilot program had reached an annualized rate of 7 billion dollars by expanding compatibility to nine blockchains, and described blockchain-based settlement as a "viable...
Keep reading with a free account
The rest of this article, and every signal for Visa, is in your free account.
