SoFi launches SoFiUSD, the first bank-issued USD stablecoin for business payments.

According to CoinDesk, SoFi Technologies (stock code: SOFI), a US-listed fintech company, recently launched its USD stablecoin, SoFiUSD.

This stablecoin aims to provide banks, fintech companies, and other institutional platforms with a more efficient and lower-cost solution for fund transfers.

SoFiUSD is issued by SoFi Bank, a licensed entity under SoFi, which is one of the key reasons for the product's significant attention.

SoFi Bank holds a US national banking license and is insured by the Federal Deposit Insurance Corporation (FDIC), making SoFi the first US national bank to open its stablecoin infrastructure to external users, marking a significant step in the integration of traditional finance and digital assets.

Currently, SoFiUSD will primarily be limited to internal system use, with plans to gradually expand to a wider SoFi user base in the coming months. This phased approach demonstrates SoFi's prudent approach to compliance and risk control.

Unlike most stablecoins issued by crypto-native institutions, SoFiUSD is fully backed by cash held at the Federal Reserve at a 1:1 ratio. This reserve structure means users can redeem their funds at face value at any time, with virtually no risk of credit default or insufficient liquidity, further enhancing its stability and credibility.

Furthermore, SoFiUSD is deployed on a public blockchain, leveraging distributed ledger technology to achieve near real-time fund transfers, extremely low costs, and 24/7 uninterrupted operation. This design not only improves the efficiency of cross-border payments and settlements but also provides a compliant and reliable entry point for traditional financial institutions to access blockchain networks.

Overall, the launch of SoFiUSD is not only an important expansion of SoFi's own business matrix but also reflects the increasingly proactive integration of traditional licensed financial institutions into the digital currency ecosystem. As stablecoins gradually become an important tool for payments and settlements, the issuance of a fully reserve-based stablecoin by a bank insured by the FDIC may set a new benchmark for security and compliance in the industry. (Source: BLOCKBEATS)