SoFi Bank launches SoFiUSD — a 1:1 dollar-backed stablecoin for banks and fintechs
SoFi Bank (SoFi Technologies) has launched SoFiUSD, a fully reserved US dollar stablecoin issued by SoFi Bank, N.A., designed for regulated settlement among banks, fintechs and enterprise platforms. SoFiUSD is backed 1:1 by cash deposits held at the Federal Reserve and redeemable on demand. The token will initially be issued on Ethereum (public, permissionless blockchain) with plans to expand to additional chains. SoFi plans to use SoFiUSD first for internal settlement — including cross-border payments via SoFi Pay and Galileo partners — then open access to other businesses in coming months. CEO Anthony Noto said the coin addresses slow settlement, fragmented payment rails and unverified reserve models, and will support institutional payment flows and dollar liquidity needs. The launch follows broader US bank interest in deposit-backed stablecoins after clearer regulatory guidance (OCC/Genius Act context) and comes as SoFi expands crypto products and partnerships. For traders: SoFiUSD introduces a regulated, bank-issued dollar liquidity instrument that may increase on-chain USD settlement capacity, reduce settlement times and lower counterparty risk for dollar flows — factors that can affect stablecoin market share, liquidity routing and fiat on/off-ramp dynamics.
Neutral
SoFiUSD’s launch is unlikely to directly move the price of major cryptocurrencies but is material for the stablecoin sector and dollar liquidity flows. Short-term: neutral impact on token prices because SoFiUSD is a fiat-backed instrument redeemable 1:1; it competes with existing dollar stablecoins for market share but will roll out initially for internal settlement, limiting immediate market liquidity effects. Mid-to-long term: potentially bullish for on-chain USD settlement capacity and institutional adoption of tokenized deposits — this can shift stablecoin market composition, reduce reliance on unbacked or less-regulated issuers, and improve fiat rails. For traders, the key effects are structural: possible reallocation of dollar liquidity toward bank-backed stablecoins, changed routing of settlement flows, and incremental reduction in settlement risk. These are more likely to affect stablecoin spreads, on-chain liquidity pools and institutional flows than to cause price volatility in unrelated crypto assets.