SoFiUSD is initially deployed on Ethereum with plans to expand to other networks, enabling SoFi’s infrastructure to settle and process payments for partners with near-instant, around-the-clock transactions at fractional-cent costs.

Key use cases include crypto trading settlement for SoFi, integration with card networks, retailers, and enterprise payments, offering 24/7 settlement at lower costs and supporting both cross-border and domestic payments.

US banks are exploring stablecoins following the GENIUS Act, with institutions like JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo researching stablecoins for payments and settlement, while some warn against yield-bearing stablecoins and note regulatory gaps.

The launch occurs amid broader fintech activity in stablecoins, with competitors such as Klarna, Western Union, and Stripe pursuing USD-backed stablecoin initiatives for settlement and payment infrastructure.

SoFi’s timeline includes expanding crypto services for consumers, building on November’s crypto trading expansion under SoFi Crypto and enabled by an OCC interpretive letter allowing banks to offer cryptocurrencies.

CEO remarks frame the move as applying SoFi’s regulatory and operational framework to fix slow settlement and fragmented providers, leveraging a national bank charter with on-chain transparency to move funds more safely and efficiently.

Currently live for internal settlement, SoFiUSD can be used for payments and settlements across card networks, retailers, remittances via SoFi Pay, and Galileo platform transactions, and could serve as a dollar-denominated asset in volatile currency markets.

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This launch follows JPMorgan’s JPM Coin rollout on Base, highlighting a broader trend of traditional banks developing stablecoin-based payment tools.

Transparency around reserve models and immediate redemption capabilities address stability concerns, with incentives generated from reserves potentially shared with partners.

The stablecoin leverages SoFi’s banking license and reserve model, giving it a regulatory edge over crypto-native issuers.

SoFi’s share price rose about 5% in early trading after the announcement, with a six-month gain exceeding 70%.