SoFi Technologies Inc. shares advanced 7% on Friday morning, extending a 5% increase from Thursday after the company announced the launch of SoFiUSD, a stablecoin it says is the first issued by a U.S. national bank on a banking platform.
The firm said SoFiUSD is now accessible for SoFi's nearly 15 million members to buy, sell, and hold directly inside the SoFi app. SoFi described the token as redeemable one-to-one for U.S. dollars from SoFi Bank, and said the bank maintains liquid assets to support all outstanding SoFiUSD.
“At SoFi, we believe we can combine the speed and versatility of the blockchain with the trust of a bank to improve how money moves around the world,” said Anthony Noto, CEO of SoFi. “People no longer have to choose between blockchain technology and regulated banking products.”
SoFiUSD is available on the Ethereum and Solana networks at launch, and the company said it expects to add additional blockchain networks over time. SoFi also emphasized that members will receive bank-grade safeguards, including regular attestations performed by an independent Certified Public Accountant licensed in the United States.
The company outlined a near-term product expansion roadmap. In the coming weeks SoFi plans to add functionality allowing members to convert SoFiUSD into tokenized deposits, which would enable earning interest and access to FDIC insurance on those deposits. SoFi also intends to enable cross-border transfers using the stablecoin and to list SoFiUSD on its first centralized exchange partner, Bullish, for institutional clients.
SoFi said full availability of SoFiUSD is anticipated by early June, contingent on members updating to the latest version of the SoFi app.
Key points
- SoFi shares rose 7% Friday morning, following a 5% gain on Thursday tied to the SoFiUSD launch.
- SoFiUSD is presented as the first stablecoin issued by a U.S. national bank on a banking platform and is redeemable 1:1 for U.S. dollars from SoFi Bank.
- The product rollout affects fintech, banking, crypto, and cross-border payments markets as it brings bank-issued digital currency into a consumer app used by nearly 15 million members.
Risks and uncertainties
- Full availability depends on members updating to the latest SoFi app - timing and user adoption are uncertain and could affect rollout speed.
- Planned product features such as tokenized deposits, FDIC-insured access, and cross-border transfers are stated as upcoming; execution and implementation timing were not specified.
- Expansion to additional blockchain networks and the institutional listing on Bullish are planned steps; these remain subject to completion and are not guaranteed as of the announcement.
This article reports the company’s statements about product features and timelines as presented by SoFi without additional inference or commentary.