SAN FRANCISCO (NewsBlock) -
SoFi launched SoFiUSD, a fully reserved U.S. dollar stablecoin, on Thursday, becoming the first national bank in the United States to issue a stablecoin on a public, permissionless blockchain.
SoFi said SoFiUSD will be backed one-to-one by U.S. dollar deposits and short-term Treasuries, with reserves held in federally insured accounts. The launch marks a watershed moment as banks begin integrating blockchain-based payment systems into regulated financial infrastructure.
“SoFiUSD represents the next step in
bringing stability, transparency, and speed to digital finance,” said Anthony
Noto, SoFi’s Chief Executive Officer. “Our goal is to give consumers and
businesses access to the benefits of blockchain without sacrificing trust or
compliance.”
The San Francisco-based bank said
SoFiUSD will operate initially on the Ethereum and Avalanche networks, allowing
instant settlement and low-cost transactions. Customers can mint or redeem
tokens directly through SoFi’s mobile banking app starting next week.
Stablecoins cryptocurrencies
pegged to fiat currencies like the dollar have become a core pillar of global
digital finance, with over $160 billion in circulation as of December,
according to data from CoinMetrics. However, most stablecoins are issued by
fintech firms rather than federally chartered banks.
By becoming the first national bank
to issue such a token, SoFi is testing how traditional financial institutions
can adopt blockchain infrastructure under existing U.S. regulations.
Regulators have signaled growing
scrutiny of the stablecoin sector, citing concerns over transparency and
systemic risk. The U.S. Treasury and Federal Reserve have urged
Congress to pass legislation setting clear rules for reserve management and
redemption rights.
“SoFi’s move will pressure other
banks to clarify their stance on digital assets,” said Sheila Warren, CEO of
the Crypto Council for Innovation. “It blurs the line between traditional
deposits and tokenized money.”
SoFi emphasized that all SoFiUSD
reserves will be audited monthly by an independent accounting firm, with
reports made public. The company said its goal is to exceed current standards
for stablecoin transparency.
Consumer protection advocates
welcomed the move but urged caution. “A bank-backed stablecoin could introduce
new forms of risk if not properly regulated,” said Dennis Kelleher, president
of Better Markets. “Oversight must keep pace with innovation.”
SoFi shares rose 3.2% to $8.14 in
afternoon trading following the announcement, reflecting investor optimism over
the bank’s expanding role in digital assets.
Market
Reaction
Crypto market analysts said SoFiUSD
could accelerate the integration of stablecoins into mainstream payments and
banking services.
“This is a clear signal that
blockchain is moving inside the traditional banking perimeter,” said Samir
Jain, managing partner at DLx Digital Advisors. “It’s no longer just startups
issuing tokens now we have federally regulated banks stepping in.”
Analysts expect other major banks to
monitor SoFi’s rollout closely. JPMorgan Chase, Citigroup, and Wells Fargo have
explored internal blockchain payment systems but have yet to issue publicly
tradable stablecoins.
Industry observers said the move
could influence the Federal Reserve’s ongoing research into a potential U.S.
central bank digital currency (CBDC). “SoFiUSD could become a live test case
for how tokenized dollars coexist with traditional money,” said Jain.
The token’s success will depend on adoption and regulatory clarity. The House Financial Services Committee is scheduled to discuss the “Stablecoin Regulation Act” in early 2026, which could determine how banks like SoFi operate in the space.