SoFi Sets a Milestone: The First U.S. National Bank to Launch Stablecoin on a Public Blockchain

SoFi has achieved a significant milestone by becoming the first U.S. nationally chartered retail bank to issue a dollar-backed stablecoin on a public, permissionless blockchain. This development signals a pivotal change in how regulated banks are engaging with on-chain finance.

Key Takeaways

SoFi has launched SoFiUSD, a dollar-backed stablecoin aimed at consumer and other institutional utilizations.
The stablecoin is fully backed by reserves at the Federal Reserve, offering immediate redemption capabilities.
The launch is facilitated by the recent GENIUS Act, which provides a regulatory framework for payment stablecoins in the U.S.
The growing stablecoin market is projected to exceed $3 trillion by 2030, fueled by the demand for efficient payment solutions.

SoFi Makes History: First U.S. National Bank to Issue Stablecoin on Public Blockchain

SoFi Brings Stablecoins into Banking

SoFi has announced that its new stablecoin is live for internal settlement activities and will be available to its members in the upcoming months. This places SoFi at the forefront of a significant change in U.S. financial regulations, where federal agencies are now formalizing the integration of blockchain-based payment systems into the banking sector, instead of perceiving them solely as potential risks.

SoFiUSD is issued by SoFi Bank, N.A., a federally regulated and FDIC-insured institution. Importantly, it is one-to-one backed by cash reserves deposited at the Federal Reserve. This setup is designed for immediate redemption and mitigates any credit or liquidity risks associated with other financial instruments like commercial paper.

As a national bank, SoFi is obligated to provide certified reserve reporting under the regulations set forth by the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), which became law in July 2025.

GENIUS Act Resolves Stablecoin Uncertainty for U.S. Banks

The GENIUS Act established the first comprehensive federal framework governing payment stablecoins within the United States. It allows insured depository institutions to issue stablecoins through recognized structures, provided they comply with rigorous reserve, disclosure, and supervisory stipulations.

Following the enactment of the GENIUS Act, the Office of the Comptroller of the Currency (OCC) and the FDIC issued updated guidance that specifically permits banks to engage in stablecoin issuance, custody, and tokenized settlements according to a predefined set of rules. This clarity has effectively resolved years of uncertainty that previously caused SoFi to halt its cryptocurrency operations in 2023.

SoFi has indicated that the stablecoin will facilitate various settlement functions, including crypto trading, card network settlements, merchant payments, and international remittances. Additionally, for users in countries with unstable currencies, SoFi plans to incorporate SoFiUSD as a dollar denominated balance within debit or secured credit products.

The launch surfaces amid a rapidly expanding stablecoin market, with data from DefiLlama revealing an approximate total stablecoin market capitalization of $309 billion. Tether’s USDT holds over $186 billion and Circle's USDC is nearing $78 billion.

Stablecoin Market Growth

Analysts forecast the global stablecoin market could soar beyond $3 trillion by 2030, driven by the growing demand for faster transactions, lower-cost international payments, and easier access to dollar liquidity outside traditional banking avenues.

Mainstream Acceptance of Stablecoins Amid Regulatory Developments

The regulatory landscape has been evolving in tandem with market expansion. On December 16, the FDIC approved a rule that outlines how FDIC-supervised banks may apply to issue payment stablecoins under the framework established by the GENIUS Act.

This proposal introduces an official application process, stating that only approved entities—known as permitted payment stablecoin issuers—are authorized to issue these assets in the U.S.

Earlier this month, the OCC also granted conditional approval to several cryptocurrency firms, including Circle and Ripple, enabling them to seek national trust bank charters, effectively placing more digital asset companies under a unified federal supervisory system.