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SoFi Bank Launches First USD-Pegged Stablecoin on Public Blockchain

SoFi Bank Launches First USD-Pegged Stablecoin on Public Blockchain

SoFi Technologies debuts SoFiUSD, marking the first U.S. national bank-issued stablecoin on a public blockchain, with infrastructure enabling round-the-clock settlements for banks and fintech firms.

Summary

SoFi Technologies announced the launch of SoFiUSD, a fully reserved U.S. dollar stablecoin, making it the first U.S. national bank to issue such an asset on a public, permissionless blockchain. SoFi Bank will provide settlement infrastructure for banks, fintech companies, and enterprises, enabling near-instant transactions 24/7. Initially targeted for institutional use, SoFiUSD maintains 1:1 cash reserve backing to ensure stability and trust.

Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value by pegging to a reserve asset, such as the U.S. dollar.
  • USD-Pegged: A value mechanism where the asset’s worth is tied directly to the U.S. dollar at a fixed rate, typically 1:1.
  • Public Blockchain: An open, decentralized ledger accessible to anyone, allowing transparent and secure peer-to-peer transactions.