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US Stablecoin Market Awakens as SoFi Launches First Bank-Issued Token

SoFi has officially launched SoFiUSD, a fully reserved U.S. dollar-backed stablecoin, through its nationally chartered bank.

This move positions SoFi as a pivotal player in the regulated banking landscape of on-chain finance.

SoFiUSD aims to enable near-instant, 24/7 settlements for banks and fintechs, employing a public, permissionless blockchain.

Unlike many existing stablecoins, this new offering ensures compliance and transparency by being fully backed by cash reserves at SoFi Bank, N.A.

The initiative comes during a time of increasing regulatory scrutiny on stablecoins, particularly with the recent enactment of the GENIUS Act in the U.S.

SoFi’s bank-issued stablecoin is designed to facilitate smoother transactions across various sectors, including remittances and enterprise payments.

With its launch, SoFi is focusing on delivering infrastructure for banks and fintechs, providing a more reliable foundation for stablecoin integration.

Currently, SoFiUSD is available for internal transactions, with plans for broader rollout to consumers in the near future.

As the stablecoin market continues to evolve, its value is projected to surge towards $3 trillion by 2030, highlighting significant growth potential.

SoFi's strategic entry into the stablecoin arena could pave the way for traditional financial institutions to embrace blockchain technology.