SoFi launches SoFiUSD, the first bank-issued USD stablecoin for business payments.
TL;DR
SoFi Technologies launched SoFiUSD, the first U.S. national bank-issued stablecoin, designed for faster, low-cost business payments. It is fully backed by cash at the Federal Reserve and currently for internal use, with plans to expand to users soon.
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On December 18, according to CoinDesk, SoFi Technologies (SOFI), a US-listed fintech company, has launched the USD stablecoin SoFiUSD, which aims to provide banks, fintech companies, and enterprise platforms with faster and lower-cost cash flow solutions.
This stablecoin is issued by SoFi Bank, a U.S. national banking licensed and FDIC-insured financial institution, making it the first U.S. national bank to open its stablecoin infrastructure to the public. SoFiUSD will currently be used internally only and is expected to be available to a wider range of SoFi users in the coming months.
Unlike stablecoins issued by crypto-native companies, SoFiUSD is fully backed by cash held at the Federal Reserve at a 1:1 ratio, meaning users can redeem it instantly without incurring credit or liquidity risk. Deployed on a public blockchain, this stablecoin enables funds to flow in a near-instantaneous, low-cost, 24/7 manner.