SoFi has launched a new dollar-backed stablecoin, named SoFiUSD, making it the first U.S. national bank to offer stablecoins directly to retail customers on a public blockchain. This initiative allows approximately 15 million SoFi members to buy, sell, hold, and convert SoFiUSD through the SoFi app, which operates on both Ethereum and Solana networks.
Each SoFiUSD token is redeemable at a 1:1 ratio for U.S. dollars via SoFi Bank. The introduction of this stablecoin aligns with a growing trend among banks to explore blockchain technology and creates opportunities for traditional financial applications, such as cross-border payments and business-to-business transactions.
SoFi's approach is aimed at leveraging the potential of stablecoins beyond the current crypto market, which is dominated by issuers like Tether and Circle. A representative from SoFi commented on the limited use of stablecoins in traditional finance, highlighting the need for a shift towards applications that could benefit from regulatory oversight.
