SoFi (SOFI) has introduced a U.S. dollar stablecoin named SoFiUSD, aiming to facilitate rapid and cost-effective transactions for banks, fintech companies, and enterprise platforms.
This stablecoin is issued by SoFi Bank, which is both nationally chartered and FDIC-insured, making it the first national bank in the U.S. to provide open access to its stablecoin infrastructure.
Recently, JPMorgan unveiled its deposit token, JPM Coin, on the Base platform.
Currently, SoFiUSD will be used internally, with a wider rollout planned for SoFi members in the upcoming months.
In contrast to stablecoins from cryptocurrency-native firms, SoFiUSD is fully collateralized at a 1:1 ratio by cash held at the Federal Reserve, allowing users to redeem it instantly, eliminating credit or liquidity risks. The coin operates on a public blockchain, enabling 24/7 fund transfers at near-instant speeds and low costs.
This infrastructure also paves the way for SoFi’s partners, including banks, card networks, and software companies, to create their own white-labeled stablecoins or integrate SoFiUSD into their existing payment systems. This service leverages SoFi’s banking license and reserve strategy, which the company claims offers a competitive advantage over less regulated stablecoin providers.
“We’re utilizing the infrastructure we’ve developed over the last decade to address real-world issues in financial services,” stated SoFi CEO Anthony Noto. “Companies today face challenges with slow settlements, fragmented services, and unverifiable reserve models. SoFi is working to close these gaps.”
