SoFi Technologies has just achieved a historic milestone in the digital finance sector. On December 18, 2025, SoFi officially launched SoFiUSD, the first stablecoin issued by a national bank in the United States on a public blockchain.
Below are detailed information about this groundbreaking move by SoFi:
SoFiUSD: A bridge between Traditional Banking and Blockchain
Unlike popular stablecoins like USDT or USDC (issued by private companies), SoFiUSD is issued directly by SoFi Bank, N.A. – a custody organization insured by FDIC and subject to OCC oversight.
Key features of SoFiUSD
1:1 backing: Each SoFiUSD is fully backed by cash held at the Federal Reserve (Fed). This helps eliminate liquidity risk and credit risk.
Infrastructure for businesses: SoFi positions itself as a stablecoin infrastructure provider. Other banks, fintech companies, and businesses can use SoFiUSD or SoFi's "white-label" solution for faster payments.
Launched on Ethereum: Initially, SoFiUSD was issued as an ERC-20 token on the Ethereum network, with plans to expand to other blockchains in the future to increase global accessibility.
Benefits for Business Payments
SoFiUSD is designed to address the biggest "pain points" of businesses today in the traditional banking system:
Benefits:
Settlement speed: Payments are almost instant, 24/7, instead of waiting several days through the Swift or ACH systems.
Low costs: Transactions on the blockchain minimize intermediary fees, with costs amounting to only a fraction of a cent.
Transparency: Reserves are verified on-chain and subject to bank-level oversight, providing absolute trust for institutional partners.
High applicability: Can be integrated into card networks, retail payments, and international remittances through SoFi Pay.
SoFi's vision
SoFi's CEO, Anthony Noto, shared that the launch of SoFiUSD aims to apply the technology infrastructure they have built over the past decade to address real-world challenges. SoFi not only wants to serve individual users (buying and selling BTC, ETH) but also aims to become the infrastructure platform for the entire new digital financial ecosystem.
Note: Although issued by a bank, the SoFiUSD token itself is not insured by FDIC; only cash deposits held in the bank are insured.
The content is informative and analytical, not investment strategy advice.
