SoFi Launches Fully Reserved SoFiUSD Stablecoin Through its National Bank
SoFi Technologies has introduced SoFiUSD, a US dollar stablecoin backed one-to-one by cash reserves held at SoFi Bank, a federally insured institution. SoFiUSD is redeemable on demand, initially issued on the Ethereum network, and intended to facilitate low-cost settlements for banks, fintechs, and enterprise platforms, with expansion to additional blockchains planned. The stablecoin is currently limited to internal settlement use. SoFi, which offers consumer banking and crypto services, saw a share price increase following the announcement. The launch follows SoFi’s earlier rollout of crypto trading and aligns with a broader industry trend, as major US banks such as JPMorgan, Citigroup, and Bank of America are exploring stablecoin solutions following regulatory clarification under the GENIUS Act. Some banks remain concerned about stablecoins offering yield, urging lawmakers to address potential loopholes in regulation to safeguard traditional banking deposits.
