SoFi Bank in the United States has become the first nationally chartered, FDIC-insured bank to use stablecoin technology for settling card payments. The bank is working together with Mastercard to move its debit and credit card programme to a blockchain-based system. SoFi will use SoFiUSD, a digital coin made by the bank, for these money transfers and plans to process more than $25 billion each year with this new system.

SoFi made this change because it wants to make its card settlement system faster and more efficient. The old method used traditional clearing systems, but the new system uses blockchain, which is a digital record-keeping tool. By using its own stablecoin, SoFi hopes to bring new technology into normal banking and make its services more modern.

For most customers, this change will not affect how they use their cards. Their experience will stay the same. However, SoFi now has better technology behind its banking system. The bank also plans to talk with other companies to use stablecoin-based settlements in more places.