SoFi launches US dollar-backed stablecoin
San Francisco-based fintech platform SoFi (SOFI) has launched a US dollar-backed stablecoin called SoFiUSD, becoming the first nationally chartered bank to do so on a public, permissionless blockchain.
The company said that it would serve as a stablecoin infrastructure provider for fintechs, banks and enterprise platforms. SoFi noted that the stablecoin allows firms to move funds on the blockchain 24/7, while offering near-instant settlement at fractional-cent pricing.
The company also highlighted the "bank-grade oversight" it provides to companies looking to integrate stablecoin products and services.
SoFi announced in June that it was re-entering the digital asset space for the first time in two years.
The company shut down its crypto operations in 2023 after receiving a conditional approval from the Office of the Comptroller of Currency (OCC) under the Biden administration to operate as a holding company the previous year.
The company said in a regulatory filing in 2022 that the approval from the OCC hinged on the company not engaging in any crypto-related activity or services without approval from the agency.
However, with the Trump administration’s revised rules for digital assets, the OCC now allows nationally chartered banks to offer crypto custody and execution services on behalf of its customers.
“Thus, having a national bank license, as well as the vast technology expertise as a digital-only financial company, SoFi is uniquely positioned to bridge traditional financial systems and emerging technology, giving members the trust and confidence they deserve,” the company said in a statement at the time.
Because it's a nationally chartered, insured deposit bank, SoFi noted that it can keep reserves in cash for SoFiUSD at its Federal bank account without any liquidity or credit risk.
“Blockchain is a technology super cycle that will fundamentally change finance, not just in payments, but across every area of money,” SoFi CEO Anthony Noto said in a statement. “With SoFiUSD, we’re using the infrastructure we’ve built over the last decade and applying it to real-world challenges in financial services.”
He pointed to the challenges that companies face "with slow settlement, fragmented providers, and unverified reserve models."
"SoFi is helping address these gaps by combining our regulatory strength as a national bank with transparent, fully reserved on-chain technology to provide a safer and more efficient way for partners to move funds," Noto added.
SoFiUSD can be used in settlement by card networks, retailers, or businesses that want 24/7 settlement faster and at a lower cost, the company said.
Last month, SoFi became the first nationally chartered bank to offer crypto trading services to its members through SoFi Crypto, its new digital asset platform.
With this platform, the company said its users can buy, sell and hold dozens of cryptocurrencies, including Bitcoin, Ethereum and Solana.
In introducing its new digital asset platform, SoFi cited data showing that 60% of its members who own crypto would prefer to manage their digital assets with a licensed bank over their primary crypto exchange.
SoFi's stock gained 3.6% on Friday and has gained nearly 77% for the year.