- SoFi Bank has launched the first national bank-backed stablecoin, SoFiUSD.
- SoFiUSD is fully backed by the bank, offering users instant and efficient transactions.
- With this launch, SoFi Bank is poised to emerge as a stablecoin infrastructure.
SoFi Bank, a nationally chartered online bank, shattered conventional boundaries in the financial sector with the launch of SoFiUSD, a fully reserved USD stablecoin. As the first national bank-backed stablecoin to be issued on a public blockchain. SoFiUSD promises a bring about a new wave of innovation, efficiency, and accessibility to the financial ecosystem.
This pioneering initiative not only underscores SoFi Bank’s commitment to harnessing the power of blockchain technology but also positions the platform as a trailblazer in the rapidly evolving fintech space. With SoFiUSD, the bank aims to provide a robust and reliable stablecoin infrastructure. This could be seamlessly integrated into the financial systems of banks, fintechs, and enterprise platforms, enabling them to facilitate transactions with unprecedented speed and efficiency.
SoFi Bank Unveils SoFiUSD’s Role in Financial Innovation
According to a recent press release, SoFi Bank has launched SoFiUSD, a stablecoin fully backed by the US dollar. This marks a major milestone as the first stablecoin issued by a national bank on a public blockchain.
With SoFiUSD, the institution is poised to become a major stablecoin infrastructure provider, catering to banks, fintechs, and enterprises seeking to streamline their transactions. SoFiUSD will allow partners to conduct near-instant transactions at fractional-cent costs, using the company’s bank-grade infrastructure, with plans to extend its use to SoFi members soon.
“Blockchain is a technology super cycle that will fundamentally change finance, not just in payments, but across every area of money,” stated CEO Anthony Noto. He added,
“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.”
SoFiUSD to Debut on Ethereum Blockchain
Reportedly, SoFi Bank intends to introduce the SoFiUSD token initially on the Ethereum blockchain. The company is also planning to expand the stablecoin’s reach to multiple blockchains over time, driving global adoption and availability.
With SoFi’s infrastructure, partners can create their own white-labeled stablecoins or seamlessly integrate SoFiUSD, tapping into SoFi’s banking expertise and regulated reserve model.
Stablecoin Frenzy: SoFi Bank’s SoFiUSD Aligns with Growing Trend
Significantly, the launch of SoFiUSD is the latest move in a broader trend of traditional finance companies embracing blockchain-based settlement and payment infrastructure. Other major players, including Klarna, Western Union, and Stripe, have also unveiled their own stablecoin initiatives, such as KlarnaUSD, USDPT, and USDB, respectively.
This shift towards stablecoins is driven by their potential to facilitate faster, cheaper, and more efficient transactions. Stablecoins like SoFiUSD, which are pegged to the value of a traditional currency, offer a stable store of value and medium of exchange. As Times of Blockchain recently reported, Startale Group joined hands with SBI Holdings to launch a regulated Japanese yen-denominated stablecoin.
Unlike other stablecoins, SoFiUSD is backed 1:1 by cash reserves at the Federal Reserve, allowing for instant redemption and minimizing risks.
