SoFi’s launch suggests the stablecoin market may be approaching a turning point, where banks start to compete.
SoFi has launched its own dollar-pegged stablecoin, becoming the first US national bank to offer a stablecoin through a banking app.
Named SoFiUSD, the stablecoin allows the company’s nearly 15 million members to buy, sell, hold, and convert digital dollars directly within its app.
Launched on 27 May, the stablecoin is redeemable 1:1 for US dollars and is available on both Ethereum and Solana, with additional blockchain networks expected to follow in the coming months.
The company states the stablecoin is backed by liquid assets held by SoFi Bank and will include regular attestations carried out by an independent certified public accountant in the US.
SoFi said it also plans to expand the use cases of the digital asset in the coming weeks, including enabling users to convert holdings into tokenised deposits linked to FDIC-insured accounts, facilitating cross-border value transfers and launching the stablecoin on digital asset exchange Bullish for institutional trading activity.
Banking on trust
A key line repeated in the announcement was in relation to trust, stating that this sets a “new standard for trust in digital assets.”
US financial institutions expressed interest in embracing stablecoins in the past, but were adamant that they must wait for regulations to be introduced before making the leap.
The passing of the GENIUS Act in July 2025 was the regulation they were waiting on to get started, and now the stablecoin market, which is currently dominated by crypto native firms, could be on the turn.
SoFi has marketed its launch around the idea that regulated institutions can offer the benefits of blockchain technology while keeping the safeguards and familiarity associated with traditional banking.
“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,” says Anthony Noto, CEO of SoFi.
“People no longer have to choose between blockchain technology and regulated banking products. With SoFiUSD, we’re giving our members a single place to buy, hold, and pay with digital assets in the same app they already use to save, spend, borrow, and invest.”
As part of this trust, the company emphasised what it describes as “bank-grade safeguards”, including transparency around reserves and the ability for users to redeem SoFiUSD directly through SoFi Bank.
Is SoFi the first of many?
In Europe, banking consortium Qivalis is making headway on its plans to launch a fully regulated euro-denominated stablecoin backed by several financial institutions. The group recently announced that a further 25 banks had joined the project, bringing the total to 37.
Stablecoins have gained a lot of traction across payments, cross-border transfers and digital asset trading, with many financial institutions viewing tokenised money as a bridge between traditional banking infrastructure and blockchain-based finance.
While stablecoins have been dominated by crypto firms such as Tether and Circle, regulatory developments in both the US and Europe are opening the door for banks to enter the market.
On their side, as shown by SoFi’s messaging, is the trust they believe consumers have in them, as well as an established network.
The company has nearly 15 million members, and Qivalis reaches even further, potentially threatening Tether and Circle’s reign in the market.
