Why Is SoFi Using Stablecoins for Card Settlement?
SoFi has begun settling debit and credit card transactions through its SoFiUSD stablecoin on Mastercard’s global payment network. The development illustrates how stablecoins are moving beyond crypto-native trading and into institutional payment settlement.
The card program is expected to process more than $25 billion in annualized volume. Merchants do not need to hold SoFiUSD or modify their existing payment infrastructure. Settlement can ultimately reach a SoFi Bank account.
This creates a connection between conventional card payments and blockchain-based settlement. Consumers may continue using ordinary cards while the institutional settlement layer behind those payments increasingly uses stablecoin infrastructure.
For KYT systems, this changes the monitoring model. The relevant question is no longer simply who sent crypto to whom, but how stablecoins are issued, transferred, settled and ultimately redeemed.
What Should KYT Monitor When Stablecoins Enter Card Payments?
Traditional card transactions provide extensive customer and merchant information, while blockchain transactions provide transparent wallet addresses and observable asset movements.
When these systems connect, KYT can use blockchain intelligence to analyze the movement of settlement assets. Stablecoins may move from issuer-controlled wallets to settlement addresses and then through multiple counterparties before reaching a bank account.
If one of those addresses has previous exposure to fraud, theft, sanctions or other high-risk entities, card transaction data alone may not provide sufficient context.
KYT systems therefore need relationship graphs connecting stablecoin wallets, payment providers, merchants and bank accounts while preserving risk information across both environments.
How Can Continuous Monitoring Support Large-Scale Stablecoin Payments?
Large-scale stablecoin settlement can generate high-frequency and cross-border transactions. Monitoring systems should avoid relying only on individual transaction values and instead establish behavioral baselines.
A legitimate merchant may generate thousands of similar payments every day, while a suspicious account may receive funds from unrelated sources and rapidly distribute them across multiple external wallets.
Combining transaction frequency, source analysis, destination analysis, behavioral patterns and historical risk labels can help compliance teams distinguish normal payment activity from unusual fund movements.
As stablecoins become integrated with card networks, KYT will increasingly operate as a bridge between traditional payment monitoring and blockchain transaction intelligence.