SoFi Technologies has entered the stablecoin market with a move that blends traditional banking oversight and public blockchain infrastructure.
The company announced the launch of SoFiUSD, a U.S. dollar–backed stablecoin issued by SoFi Bank, describing it as the first instance of a nationally chartered U.S. bank deploying a stablecoin on a public, permissionless blockchain. The token is live on Ethereum, with potential expansion to other networks over time.
Key Takeaways
SoFiUSD is issued by an OCC-regulated, FDIC-insured national bank
The stablecoin is fully backed 1:1 by cash held at the Federal Reserve
SoFi is positioning the product as infrastructure for banks, fintechs, and enterprises
Initial use cases focus on settlement, payments, and remittances
SoFi says the stablecoin is designed to support near-instant, low-cost transactions using bank-grade infrastructure. Institutional partners will be able to integrate SoFiUSD directly into settlement and payment flows, while broader consumer access is expected at a later stage.
Beyond third-party use, SoFi plans to incorporate the stablecoin across its own ecosystem. That includes crypto trading, card network settlement, merchant payments, and cross-border transfers through SoFi Pay, allowing the token to function as both backend infrastructure and an end-user payment instrument.
A Bank-Centric Stablecoin Model
Unlike many existing stablecoins, SoFiUSD is issued directly by a federally chartered bank. SoFi Bank holds the reserves in cash for immediate redemption and maintains them within its Federal Reserve account, removing credit and liquidity risk associated with third-party custodians.
The company says this structure also allows it to generate yield on reserves in a regulated manner, with the potential to share benefits with partners and stablecoin users. In addition, SoFi’s platform will enable banks and fintechs to either use SoFiUSD directly or issue white-label stablecoins backed by the same infrastructure.
Chief executive Anthony Noto framed the launch as a response to inefficiencies in the current financial system, including slow settlement times, fragmented payment providers, and opaque reserve practices. He described blockchain as a foundational technology shift and positioned SoFiUSD as a regulated alternative to existing stablecoin models.
The launch comes amid a broader push by traditional financial firms into blockchain-based payments. Companies such as Klarna, Western Union, and Stripe have all announced stablecoin initiatives this year, signaling growing interest from established players in onchain settlement.
SoFi’s stablecoin strategy also builds on its expanding crypto footprint. After receiving regulatory clarity earlier this year, the company became the first national bank to offer direct crypto trading to consumers, allowing users to buy, sell, and hold digital assets within its app — a capability that had previously been restricted under banking rules.
Taken together, SoFiUSD represents more than a new product. It marks a strategic effort to position SoFi at the intersection of regulated banking and onchain finance, as stablecoins increasingly move from crypto-native tools to core financial infrastructure.
