SoFi Technology has unveiled SoFiUSD, a dollar-backed stablecoin, to provide a regulated stablecoin infrastructure for fintech companies and banking institutions. The stablecoin operates on a public, permissionless blockchain offering fast, regulated, and secure transactions.
SoFi Bank, a nationally chartered and FDIC-insured institution, has introduced SoFiUSD, a U.S. dollar stablecoin, to provide stablecoin infrastructure to businesses, fintech enterprises, and other banking institutions. The bank claims the stablecoin will offer a cheaper and faster medium of transferring money between institutions around the clock.
The bank intends to use the stablecoin for internal purposes and activities. However, the bank explained that it had laid out plans to expand the use of stablecoins outside its operations to other users in the coming months.
SoFi Bank unveils SoFiUSD stablecoin to power translations for businesses
In a statement released on December 18, the company noted that the stablecoin will bring bank-grade oversight and reliability to firms looking to capitalize on stablecoin technology. The bank also emphasized that SoFiUSD will run on a public, permissionless blockchain, providing users with near-instant transactions around the clock. The stablecoin will utilize ledger technology to enhance transparency for customers.
SoFi Bank highlighted that it will issue SoFiUSD under regulatory scrutiny, making it legal for commercial use. The bank also explained that the stablecoin is backed by cash held at the Federal Reserve in a 1:1 ratio and pegged to the U.S. dollar, providing users with an immediate redemption option that eliminates exposure to liquidity and credit risks.
Anthony Noto, CEO of SoFi, said that blockchain technology can transform finance through transactions and “every area of money.” The CEO also noted that SoFiUSD will leverage the existing infrastructure the bank has developed over the last decade to address real-world challenges in financial services.
The executive emphasized that the stablecoin infrastructure will eradicate struggles that companies face using traditional payment infrastructure, which includes fragmented providers, slow settlement, and unverified reserve models.
Noto also noted that the stablecoin could be used as a secured dollar-denominated asset against volatile fiat currencies. The bank said that “SoFiUSD will also be a key element of SoFi Pay” for cross-border payment settlements and day-to-day consumer purchases. The stablecoin will also provide an alternative payment method for Galileo’s partners, which process billions of payments annually, according to the press release.
SoFi Bank embraces blockchain technology
SoFi Bank has made significant strides in the crypto ecosystem. On November 11, the bank announced the introduction of cryptocurrency services to its customers. According to the announcement, SoFi Bank customers can bank, borrow, invest, buy, sell, and hold crypto through its platform. The cryptocurrencies available on the bank’s platform include Bitcoin, Ethereum, and Solana.
Cryptopolitan recently reported that the feature aligns with regulatory standards, following the OCC’s issuance of interpretive letters 1183 and 1184 in March and May 2025, which permit national chartered banks, such as SoFi, to offer crypto-related services on behalf of their clients.
In August, the bank also came under scrutiny for exploring the Bitcoin Lightning Network to facilitate international money transfers and cross-border payments. The bank partnered with Lightspark, a Bitcoin infrastructure company founded by former PayPal president David Marcus, to integrate blockchain-powered payments into its mobile banking applications.
Banks outside the U.S. jurisdiction have also expressed their interest in digital assets. In early December, BNP Paribas joined a consortium of other European banks to unveil a euro-backed stablecoin, aiming to facilitate cross-border payment solutions and institutional transactions. These banks include Raiffeisen Bank International, Banca Sella, Danske Bank, KBC, CaixaBank, DekaBank, ING, SEB, and UniCredit.
Brazil’s Nubank also joined the stablecoin bandwagon by partnering with Lightspark to introduce the Bitcoin Lightning Network in Latin America. The bank has over 100 million users from various countries, including Brazil, Mexico, and Colombia, who will potentially be exposed to the stablecoin infrastructure.
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