SoFi rolls out US dollar stablecoin issued by bank subsidiary

Issued by SoFi Bank, the dollar-backed token is designed for payments and settlement across banks, fintechs and enterprise platforms.

SoFi Technologies has launched SoFiUSD, a fully reserved US dollar stablecoin issued by its banking subsidiary, SoFi Bank.

According to Thursday’s announcement, SoFiUSD is backed one-to-one by cash held by SoFi Bank, a nationally chartered and insured depository institution, and is redeemable on demand. It is designed to support low-cost settlement for banks, fintechs and enterprise platforms.

A SoFi spokesperson told Cointelegraph that SoFiUSD will initially be issued on the Ethereum network, with plans to add support to other blockchains over time.

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