SoFi rolls out US dollar stablecoin issued by bank subsidiary

SoFi Technologies has introduced SoFiUSD, a fully reserved US dollar stablecoin issued by its banking subsidiary, SoFi Bank. This stablecoin is backed one-to-one by cash held at the bank and is redeemable on demand, intended to facilitate low-cost settlement for banks, fintechs, and enterprise platforms. Initially, SoFiUSD will be issued on the Ethereum network, with plans for future expansion to other blockchains. The stablecoin can be utilized across various payment and settlement functions, including card networks, remittances via SoFi Pay, and transactions on its Galileo platform, potentially serving as a dollar-denominated asset in volatile currency markets. Currently, it is live only for internal settlement. This move follows SoFi's earlier introduction of crypto trading for customers. The development occurs as several major US banks, including JPMorgan Chase, Citigroup, and Bank of America, are also exploring the use of dollar-backed digital tokens following regulatory clarity provided by the GENIUS Act.

(Source：Cointelegraph)