SoFi has introduced a U.S. dollar stablecoin called SoFiUSD, marking the first time a nationally chartered and FDIC insured U.S. bank has issued a stablecoin for enterprise payments. The digital dollar is issued directly by SoFi Bank and is fully backed one to one by cash held at the Federal Reserve, positioning it as a low risk settlement instrument compared with tokens issued by crypto native firms. The launch reflects growing interest among regulated financial institutions in using blockchain infrastructure to modernize payment flows. SoFiUSD is designed to enable faster and lower cost movement of funds while maintaining the regulatory safeguards expected from a traditional bank. Initially, the stablecoin will be used internally, allowing SoFi to test settlement efficiency and operational resilience before expanding access more broadly.
The stablecoin operates on a public blockchain, enabling round the clock transfers with near instant settlement and reduced transaction costs. Because reserves are held entirely in cash at the Federal Reserve, users can redeem SoFiUSD immediately without exposure to liquidity or credit risk. This structure aims to address longstanding concerns around transparency and backing in the stablecoin market. Beyond internal use, SoFi plans to offer the underlying infrastructure to external partners, including fintech firms, banks, card networks, and enterprise platforms. These partners may be able to issue white labeled stablecoins or integrate SoFiUSD directly into existing payment systems, using SoFi’s banking license and reserve framework as the foundation for compliant digital dollar services.
SoFi executives say the initiative is part of a broader strategy to tackle inefficiencies in enterprise payments, including slow settlement times and fragmented provider networks. As more financial institutions explore blockchain based settlement, bank issued stablecoins are increasingly viewed as a bridge between traditional finance and digital assets. The move comes as large banks and payment companies experiment with tokenized deposits and digital cash equivalents to support corporate payments and treasury operations. With a consumer rollout expected in the coming months, SoFiUSD could become a test case for how regulated stablecoins function at scale within the U.S. banking system, potentially influencing how enterprises adopt blockchain based payment solutions.
