SoFi Launches First Bank-Issued, Business-Focused Payment Stablecoin: SoFiUSD

BlockBeats News, December 18, according to CoinDesk, U.S. stock-listed financial technology company SoFi Technologies (SOFI) has launched the US dollar stablecoin SoFiUSD, aimed at providing banks, fintech companies, and enterprise platforms with a faster and lower-cost fund transfer solution.

This stablecoin is issued by SoFi Bank. SoFi Bank is a financial institution that has obtained a U.S. national bank charter and is FDIC-insured, making it the first U.S. national bank to open stablecoin infrastructure to the outside world. SoFiUSD will initially be used for internal purposes only and is expected to be opened to a wider range of SoFi users in the coming months.

Unlike stablecoins issued by native crypto companies, SoFiUSD is fully backed by cash held at the Federal Reserve at a 1:1 ratio, which means users can redeem it immediately without credit or liquidity risk. This stablecoin is deployed on a public blockchain, enabling funds to move in an almost real-time, low-cost, 24/7 manner.