SoFi Stock: Bank Debuts Dollar Stablecoin on Ethereum Network

TLDR

• SoFi Technologies launched SoFiUSD stablecoin on Ethereum for instant, low-cost fund settlement
• Commercial partners like banks and retailers can use the infrastructure starting Thursday
• Stock gained 64% this year as company expands crypto services beyond consumer trading
• Stablecoin backed by cash reserves at Federal Reserve with immediate redemption capability
• Launch follows November reintroduction of crypto trading platform offering 30 digital assets

SoFi Technologies unveiled its stablecoin Thursday. SoFiUSD joins the growing list of bank-issued digital currencies entering the market.

The stablecoin launches on Ethereum first. Plans call for expansion to additional blockchains down the road.

SoFi Bank issues the token under oversight from the Office of the Comptroller of the Currency. Full cash backing sits in the company’s Federal Reserve account.

SoFi Technologies, Inc., SOFI

Commercial partners can now move funds 24/7 with near-instant settlement. Costs run at fractions of a penny per transaction.

CEO Anthony Noto says the infrastructure combines regulatory strength with blockchain efficiency. The company positions itself as a provider for banks and fintechs looking to modernize payment rails.

Multiple Use Cases Target Different Markets

SoFi will deploy SoFiUSD across its consumer crypto trading business. International remittances and point-of-sale services also make the list.

The initial mint started at $10,000 on Thursday. Advanced discussions are underway with several institutions about adoption.

Partners can build white-labeled stablecoins using SoFi’s infrastructure. Broader access for SoFi members rolls out in coming months.

The company plans to share yield with token holders and partners. Returns come from cash reserves parked at the Federal Reserve.

SoFi reintroduced consumer crypto trading just last month after a two-year pause. The platform now supports 30 cryptocurrencies including Bitcoin, Ethereum, and Solana.

Members can buy crypto directly from checking and savings accounts. The company had suspended crypto in 2023 to secure its national bank charter.

Regulatory Climate Fuels Stablecoin Wave

The Genius Act passed in July under President Trump. The law established a regulatory framework for stablecoins.

Visa announced Tuesday it would enable USDC stablecoin settlements in the U.S. Fiserv launched its FIUSD token earlier this year anticipating the regulatory shift.

Last week the Office of the Comptroller granted conditional charter approvals to multiple stablecoin issuers. SoFi now operates within that approved group.

Noto promised in January that SoFi would be “incredibly aggressive” with crypto under the new administration. Thursday’s launch delivers on that commitment.

Stock Performance Reflects Crypto Strategy

Shares jumped 1.6% in premarket trading Thursday. The stock closed Wednesday up 64% year-to-date.

That performance crushes the Nasdaq Composite’s 18% gain over the same stretch. Investors are responding to the company’s one-stop-shop financial services vision.

The stock traded around $25 Thursday morning. Share price has climbed 75% over the past six months.

SoFi describes itself as among the first national banks issuing a stablecoin on a public, permissionless blockchain. The infrastructure lets companies issue their own branded tokens.

Card networks, retailers, and banks can tap into SoFiUSD for settlement operations. The company says this addresses pain points around slow settlement times and fragmented payment providers.

SoFiUSD is available now for internal settlement at institutions. Consumer availability expands in the months ahead as the company scales its blockchain infrastructure.

The post SoFi Stock: Bank Debuts Dollar Stablecoin on Ethereum Network appeared first on Blockonomi.