SoFi Launches SoFiUSD, the First U.S. Bank-Issued Stablecoin on a Public Blockchain, Backed 1:1 by Federal Reserve Cash

A regulated bank steps directly onto public blockchains as stablecoins move deeper into core financial infrastructure

TL;DR

• SoFi Bank launched SoFiUSD on Ethereum on Dec. 18, 2025, making it the first U.S. nationally chartered bank to issue a stablecoin on a public blockchain.
• SoFiUSD is fully backed 1:1 by U.S. dollar cash held at the Federal Reserve, with immediate redemption and no credit or liquidity risk.
• The move signals growing bank adoption of blockchain settlement following new U.S. stablecoin regulations.

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SoFi Technologies announced on Dec. 18, 2025, that its banking subsidiary, SoFi Bank, N.A., has launched SoFiUSD, a U.S. dollar-pegged stablecoin issued directly by a nationally chartered U.S. bank and deployed on the public Ethereum blockchain. The launch marks a first for the U.S. banking sector, where previous blockchain settlement experiments were largely confined to private or permissioned networks rather than open, permissionless infrastructure. SoFiUSD is designed to function as a fully regulated digital dollar that can move continuously, settle nearly instantly, and integrate with both traditional financial systems and on-chain applications.

SoFiUSD is backed one-to-one by U.S. dollar cash held by SoFi Bank in accounts at the Federal Reserve, a reserve structure intended to eliminate both credit and liquidity risk. The company said holders can redeem the token on demand at par value, positioning the stablecoin as a transparent and conservative alternative to privately issued tokens that rely on mixed reserve portfolios or third-party custodians. Issuance and reserve management fall under SoFi Bank’s existing regulatory framework as a nationally chartered bank overseen by the Office of the Comptroller of the Currency, adding a layer of federal supervision not typically associated with crypto-native stablecoin issuers.

Ethereum is the first supported blockchain for SoFiUSD, chosen for its maturity and developer ecosystem, though SoFi said additional networks are planned as the product expands. The stablecoin will initially be used for internal settlement, including transactions tied to SoFi’s crypto trading services, before broader access is rolled out to customers and external partners. Beyond internal use, the company is positioning SoFiUSD as a settlement and payment instrument for fintech platforms, enterprise payment flows, and interbank transfers, with potential applications spanning remittances, merchant settlement, and dollar access in regions with volatile local currencies.

SoFi executives framed the launch as a response to structural inefficiencies in legacy payment rails, citing slow settlement times, fragmented intermediaries, and limited operating hours as persistent constraints on modern finance. By issuing a stablecoin directly from a regulated bank and placing it on a public blockchain, the company aims to combine regulatory clarity with the speed and programmability of on-chain settlement. SoFi also said it plans to offer its stablecoin infrastructure to other banks and fintech firms, enabling white-label issuance and shared settlement rails built on the same reserve and compliance model.

The debut of SoFiUSD follows SoFi’s recent expansion into digital assets, including the rollout of retail crypto trading through its banking platform in November 2025, a move that made it the first nationally chartered U.S. bank to offer such services directly to consumers. Market response to the stablecoin announcement appeared positive, with SoFi shares rising roughly 5% in early trading on the day of the launch and posting gains of more than 70% over the prior six months, according to market data referenced by Cointelegraph.

Broader regulatory developments have provided a favorable backdrop for the launch. Passage of the GENIUS Act in July 2025 established clearer federal guidelines for stablecoin issuance and reserve management, encouraging deeper participation from traditional financial institutions. Other major U.S. banks, including JPMorgan Chase, Citigroup, and Bank of America, have publicly discussed stablecoin initiatives or blockchain-based settlement experiments, but SoFiUSD stands apart as the first bank-issued dollar token made openly accessible on a public blockchain. The move underscores a shift in stablecoins’ role, from crypto-native payment tools toward regulated financial infrastructure that banks increasingly view as a core component of future settlement systems.

This article has been refined and enhanced by ChatGPT.