In a groundbreaking move, SoFi Bank, N.A. has launched SoFiUSD, marking the first stablecoin issuance from a nationally chartered retail bank in the United States on a public blockchain. This stablecoin is designed to be fully backed 1:1 by cash reserves held at the Federal Reserve, ensuring its stability and reliability. The launch was made possible by the recently enacted GENIUS Act, which provides a regulatory framework for payment stablecoins.
The GENIUS Act, passed in July 2025, allows federally insured depository institutions to issue stablecoins while adhering to specific reserve, disclosure, and supervisory standards. This legislative shift has empowered SoFi to transition its stablecoin settlement into a federally chartered banking environment, integrating it with on-chain payment systems.
SoFi positions the SoFiUSD not just as a consumer product but as an infrastructure solution for banks, fintech companies, and enterprise platforms. The bank aims to facilitate internal settlement processes with this token and plans to expand access for its members in the coming months.
Each SoFiUSD token is matched with cash reserves at the Federal Reserve, a move that aims to streamline redemption processes while steering clear of exposure to commercial paper or other investment instruments. This approach underscores SoFi”s commitment to a stable and secure digital currency.
Further enhancing its credibility, SoFi Bank is regulated by the Office of the Comptroller of the Currency (OCC) and insured by the Federal Deposit Insurance Corporation (FDIC). The bank”s adherence to these regulatory standards positions it favorably within the expanding landscape of stablecoins.
The timing of this launch is significant, as the stablecoin market capitalization is reported to be near $309 billion, with projections suggesting it could exceed $3 trillion by 2030. This growth is fueled by the increasing demand for quicker settlement times, more affordable cross-border payment solutions, and access to dollar liquidity beyond traditional banking systems.
As regulatory frameworks continue to evolve, the recent approval by the FDIC for banks to issue payment stablecoins under the GENIUS Act further indicates a clear trajectory toward integrating stablecoins into mainstream banking practices. With the SoFiUSD launch, the potential for stablecoins to become a fundamental part of the financial ecosystem is becoming more apparent.
