SoFi unveiled SoFiUSD, an ERC-20 Ethereum stablecoin designed for trading, settlement and consumer payments. Issued by SoFi Bank, N.A. and backed 1:1 by cash reserves held at the Federal Reserve, the token is presented as a way to remove liquidity and credit risks common to other reserve models.
SoFiUSD is implemented as an ERC-20 token on the Ethereum mainnet, using the standard interface for fungible tokens. The issuer, SoFi Bank, N.A., operates under a national banking charter, is OCC-regulated and FDIC-insured, and holds the stablecoin’s reserves in cash at the Federal Reserve for immediate redemption capability. This fully reserved, cash-based model differs from reserve mixes that include U.S. Treasuries or commercial paper and is presented as a way to minimize liquidity and credit exposure.
The company positions SoFiUSD for internal settlement of its consumer crypto trading business and wider payment flows. Planned use cases cited in the launch include 24/7 fund transfers with near-instant settlement at fractional-cent pricing, consumer point-of-sale purchases via SoFi Pay, international remittances and settlement services for Galileo partners that process high volumes of payments. The issuer has also indicated intentions to support additional blockchains over time and to offer integration or white-labeled solutions for banks, fintechs and enterprise partners.
By issuing SoFiUSD on a public, permissionless blockchain under a national bank charter, SoFi aims to claim a first-mover position among U.S. banks. The company framed this as a “bank-grade” alternative to incumbent stablecoins. Compared with large market players that use diversified reserve mixes, the explicit cash-at-Federal-Reserve backing and national-bank oversight are the primary selling points for regulated counterparties and institutions seeking compliant dollar-denominated rails.
SoFiUSD design and reserve model
The launch has several practical implications. For payments and treasury operations, a fully reserved, bank-issued stablecoin could lower costs and speed settlement for cross-border and wholesale flows. For regulated institutions, the combination of a national charter and direct Fed reserves may simplify custody and compliance assessments relative to non-bank issuers. For the broader stablecoin market, the move could accelerate adoption of regulated issuance models and influence regulatory expectations around reserve composition and transparency.
SoFi’s approach narrows the gap between traditional banking rails and blockchain settlement, potentially encouraging other banks to explore similar offerings. The company’s roadmap—support for multiple blockchains and potential white-label issuance—signals a strategy to embed SoFiUSD into existing payment stacks and partner ecosystems rather than to compete solely as a retail token.
SoFiUSD introduces a bank-issued, cash-backed dollar token on Ethereum that the issuer positions for trading, settlement and consumer payments.
