Mastercard launches a pilot with SoFi and Galileo

interbank settlements and modernize payments

Mastercard is testing interbank settlement using the regulated stablecoin SoFiUSD as part of a pilot with SoFi and the Galileo platform. The idea is to shift the final clearing of card transactions from traditional banking systems to digital dollars, while keeping the consumer payment experience unchanged. After a purchase, the card is processed as usual, but settlements between banks may be conducted using a tokenized dollar. The company is developing the Multi-Token Network (MTN), which supports stablecoins and tokenized assets, in order to speed up settlements, reduce delays, and improve liquidity. SoFiUSD is backed 1:1 by the US dollar and issued by a regulated bank, which increases trust in the instrument. Similar initiatives are also being tested by other payment networks, including Visa. Key limitations remain related to regulatory requirements and the integration of new solutions into existing financial infrastructure.