SoFi introduced SoFiUSD, an Ethereum-based, fully reserved U.S. dollar stablecoin, marking the first time a national bank has issued a stablecoin on a public, permissionless blockchain.
SoFiUSD is issued by SoFi Bank and is backed 1:1 by cash held at the Federal Reserve, enabling immediate redeemability and reducing credit and liquidity risk. A stablecoin is a digital token pegged to a fiat currency to reduce price volatility. The bank charter allows SoFi to hold reserves directly at the Fed and to share yield derived from those reserves with holders and partners, creating a novel incentive structure for a dollar-pegged token.
The coin lives on the Ethereum mainnet and supports near-instant, low-cost movement of funds 24/7. Initially used for internal settlement, SoFi plans a phased rollout to SoFi members in the coming months, with enterprise use cases for banks, fintechs and commercial partners.
SoFi presents SoFiUSD primarily as an infrastructure product for commercial settlement and trading. Targeted applications include near-instant settlement between counterparties, international remittances, consumer point-of-sale payments and integration with Galileo’s partner network, which processes large transaction volumes. According to SoFi, the token is designed to reduce settlement latency and simplify reserve verification for counterparties.
SoFiUSD: product design and mechanics
SoFi framed the launch as part of a multi-pronged crypto strategy that began with reintroducing consumer crypto trading in November 2025 and will extend to planned crypto-backed lending and staking features. “We’re using the infrastructure we’ve built over the last decade and applying it to real-world challenges in financial services,” said Anthony Noto, CEO of SoFi, noting the company’s intent to tackle slow settlement, fragmented provider networks and opaque reserve models.
SoFiUSD’s principal differentiation stems from direct Federal Reserve custodianship of reserves; established competitors often rely on a mix of assets and third-party custody, which can introduce additional counterparty exposure. That regulatory and custodial posture underpins SoFi’s claim of bank-grade oversight and reliability.
The launch has financial and strategic implications for SoFi. Market sentiment toward the company’s crypto push has been positive: SoFi’s stock rose sharply in the months prior to the launch, reflecting investor confidence in its cross-domain strategy. For commercial partners, the new stablecoin could lower settlement costs and provide a predictable liquidity instrument; for consumers, the rollout promises faster payments and an alternative on-chain dollar token accessible through SoFi’s ecosystem.
SoFiUSD represents a deliberate move to combine a national bank charter with public blockchain rails to offer a fully reserved dollar token for settlement and payments.
