What to know:
- SoFiUSD stablecoin is now available to 14.7 million members through the SoFi app.
- The bank-issued token is redeemable 1:1 for U.S. dollars through SoFi Bank.
- Tokenized deposits, cross-border transfers, and Bullish access are planned next.
SoFi Technologies has rolled out the SoFiUSD stablecoin within its banking application, providing entry to its U.S. dollar-pegged token to members. Users are able to purchase, sell, hold, and convert it. The rollout now opens up to 14.7 million members, the company said.
SoFi called the launch a first for a U.S. national bank. It stated that no stablecoin, issued by a bank, had been offered via a banking app. SoFi Bank is the issuer of the token.
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SoFiUSD Stablecoin Offers 1:1 Redemption Through SoFi Bank
The SoFiUSD stablecoin is 1:1 with the U.S. dollar. SoFi said that it backs all outstanding tokens with liquid assets. SoFi Bank will process the redemption.
At launch, the token will be made available on Ethereum and Solana. Both networks allow digital asset transactions, SoFi said. It also announced that there are more blockchain networks in the pipeline in the future.
CEO Anthony Noto stated that there no longer should be a choice between blockchain and regulated banking products. He said that SoFiUSD stablecoin places digital assets within a single app. Members use it for saving, spending, borrowing, and investing.
The launch is the first step in a broader roadmap, according to SoFi. It is set to introduce tokenized deposits in the upcoming weeks. That characteristic might enable members to transform SoFiUSD into deposit accounts.
Those accounts can receive interest at different rates. They also may enjoy FDIC insurance on separate terms. SoFi did not mention that the stablecoin itself is protected.
The company will conduct cross-border transfers on a 24/7 basis. SoFiUSD stablecoin will be available on Bullish to institutional customers, it said. That’s a move aimed at delivering higher pricing and execution for high-volume users.
Mastercard Partnership Adds Support to SoFiUSD Strategy
The launch comes after SoFi joined forces with Mastercard in March. Both companies will consider a settlement on Mastercard’s payments network, the company said. Those can comprise SoFi Bank customers and Galileo customers.
SoFi has also grown their enterprise crypto services. It rolled out Big Business Banking for institutions in April. The platform enables companies to handle fiat, SoFiUSD and crypto under a single controlled system.
Early partners included Cumberland, Bullish, BitGo, B2C2, Fireblocks, Wintermute, Galaxy, and Jupiter. A digital asset product added to the SoFi strategy. It also tied banking products to institutional crypto trading.
SoFi has included activity by crypto in its earnings. The company posted $121.6 million in crypto revenues in Q1, following its crypto-trading relaunch. Costs reduced net income from that unit to $852,000.
SoFi explained that SoFiUSD, also known as SOFID, is not a deposit. It is not guaranteed or insured by the FDIC or SIPC, is not legal tender, and may not retain its value. The company warned blockchain transactions can face delays or losses.
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