SoFi Switches $25B Card Business to Its Own Stablecoin — Should Ripple Worry?

What happened

SoFi is moving more than $25 billion in yearly card volume onto settlement using its own stablecoin, SoFiUSD. This shift raises a new question for Ripple's RLUSD strategy.

Confirmed

Global impact / market context

A large financial firm settling card payments with its own stablecoin could reduce its need for outside settlement tokens. That matters for Ripple because RLUSD competes for the same payment-settlement role.

Analyst inference

Stablecoins are digital tokens pegged to a national currency, used to move money quickly. SoFi's move suggests large firms may prefer issuing their own tokens instead of using a competitor's token.

Analyst inference

What to watch

1. Watch whether other large card issuers follow SoFi and move settlement volume to their own stablecoins, which could shrink demand for outside stablecoins. Analyst inference
2. Ripple could respond by expanding RLUSD partnerships or offering lower settlement costs, though the supplied article confirms no such plan from the company. Proposed
3. The article states SoFi is moving over $25 billion in annualized card volume onto SoFiUSD settlement and that this raises a question for Ripple's RLUSD strategy. Confirmed

Affected assets

• XRP — XRP
• RLUSD — Ripple USD

Evidence

• coinpaper.com