The fully reserved dollar-backed token deploys initially on Ethereum with potential expansion to additional networks
Stablecoin News
SoFi Technologies launched SoFiUSD on Thursday, becoming the first nationally chartered bank to issue a stablecoin on a public blockchain. The fully reserved dollar-backed token deploys initially on Ethereum with potential expansion to additional networks, according to the company's statement.
The OCC-regulated, FDIC-insured institution positions the product as settlement infrastructure for banks, fintechs, and enterprise platforms seeking faster payment rails. SoFi Bank backs the stablecoin 1:1 with cash reserves held at its Federal Reserve account, eliminating liquidity and credit risk while generating yield shareable with partners.
CEO Anthony Noto described blockchain as a technology super cycle that will fundamentally reshape finance beyond payments. The national bank charter combined with transparent, fully reserved on-chain technology provides a safer and more efficient funds movement method, Noto stated.
Partners will integrate SoFiUSD into settlement and payment workflows using the firm's bank-grade infrastructure, enabling near-instant transactions at fractional-cent costs around the clock. The company plans white-label capabilities that allow banks, fintechs, and enterprises to issue their own branded stablecoins or deploy SoFiUSD directly within existing systems.
Applications extend beyond SoFi's crypto trading business to settlement for card networks, retailers, and businesses requiring lower-cost payment options. SoFi Pay will incorporate the stablecoin for international remittances and point-of-sale purchases while serving as an alternative payment method for platform partners that process billions in annual transactions.
The stablecoin will become available to SoFi members in the future, expanding use beyond institutional settlement. SoFi Bank maintains reserves in cash at its Federal Reserve account rather than relying on third-party custody arrangements common among non-bank issuers.
The launch follows SoFi's November debut of direct consumer crypto trading under SoFi Crypto, offering nearly 30 cryptocurrencies after OCC guidance permitted banks to provide such services. SoFi previously offered crypto trading through a Coinbase partnership from 2019 until its suspension in 2023.
Major fintech and payments companies have pursued similar initiatives this year, including Klarna's planned KlarnaUSD, Western Union's USDPT, and Stripe's USDB. The trend reflects traditional finance firms' broader push into blockchain-based settlement and payment infrastructure.
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