SoFi this week announced the launch of SoFiUSD, a fully reserved U.S. dollar stablecoin issued by SoFi Bank, N.A. SoFiUSD will enable SoFi to serve as a stablecoin infrastructure provider for banks, fintechs, and enterprise platforms. They can leverage SoFi’s bank-grade infrastructure to streamline their operations with faster and more efficient money movement.
With it on a public, permissionless blockchain, partners can move funds around the clock with near-instant settlement at fractional-cent pricing. This enables them to manage liquidity with more confidence and deliver faster and more transparent services to their customers. SoFiUSD will also be available soon to all SoFi members.
Features:
Regulatory strength: SoFiUSD is issued by SoFi Bank, N.A., an OCC-regulated insured depository institution.
Reserve transparency: SoFiUSD is fully reserved 1:1 by cash for immediate redemption capability. As a nationally chartered, insured deposit bank, SoFi can keep reserves in cash at its Federal bank account with zero liquidity risk or credit risk, while generating attractive incentives to be shared with partners and holders of SoFiUSD.
Institutional infrastructure: SoFi’s stablecoin infrastructure will enable banks, fintechs, and enterprise partners to leverage SoFi’s regulatory, operational, and reserve framework to issue white-label stablecoins or integrate SoFiUSD into their settlement flows.
“Blockchain is a technology super cycle that will fundamentally change finance, not just in payments, but across every area of money,” said Anthony Noto, CEO of SoFi. “With SoFiUSD, we’re using the infrastructure we’ve built over the last decade and applying it to real-world challenges in financial services. Companies today struggle 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.“
The coin will be used in settlement not just of its crypto trading business, but also by card networks, retailers, or businesses that want 24/7 settlement. It will also be a key element of SoFi Pay for international remittance and everyday consumer point-of-sale purchases in addition to providing an alternative form of payment for Galileo’s partners that drive billions of payments per year. For companies operating in countries with volatile currencies, SoFi plans for SoFiUSD to be used as a secured dollar-denominated asset in a consumer debit or secured credit account.