SoFi is expanding its stablecoin business to retail banking users. The company has made SoFiUSD available to all 14.7 million bank app users, attempting to bring USD stablecoins beyond crypto trading and DeFi scenarios into everyday payment and settlement networks.
Issuance to existing retail users
After its launch, SoFiUSD can be exchanged for US dollars at a 1:1 ratio and will run on both Ethereum and Solana. Compared to many new projects that first seek distribution channels, SoFi directly connects its new token to existing users of savings, lending, and investment products, meaning it has significant retail reach from the outset.
The stablecoin market has expanded rapidly in recent years. The report mentions that the number of stablecoins listed on CoinGecko has increased from less than 50 in 2018 to nearly 400 in 2025. With the increase in issuers, market competition is no longer just about "who issues their coin first," but is further shifting towards reserve quality, auditing methods, and payment network access capabilities.
Reserves and compliance are the core selling points
SoFi positions SoFiUSD as a stablecoin product that is closer to banking infrastructure. According to reports, this token is fully backed by cash held at the Federal Reserve and receives regular proof of reserves from certified public accountants.
The report also mentioned that SoFi holds a license from the Office of the Comptroller of the Currency (OCC) and is an FDIC-certified insurance bank. Compared to stablecoins like USDT and USDC, which already occupy a major share of market capitalization and liquidity, SoFi attempts to emphasize its differentiation in terms of regulatory attributes and reserve transparency.
The goal is more than just wallet transfers.
SoFi's plans are not limited to holding and transferring funds for individual users. Its B2B platform, Galileo, has over 160 million accounts, and SoFi states that other issuing banks that have integrated with Galileo may also use SoFiUSD for settlements in the future.
If this arrangement goes through, SoFiUSD will not only serve as a consumer-facing digital dollar tool, but may also be integrated into back-end financial infrastructure. The company has also expanded its partnership with Mastercard, enabling SoFiUSD to be used as a settlement currency, further extending its reach into bank card-related payment processes.
- Launch tokenized deposit products
- Supports 24-hour cross-border transfers
- Drive listing on Bullish
From an industry competition perspective, SoFi's move reflects that stablecoin issuers are expanding from crypto-native companies to licensed financial institutions and large payment networks. If SoFiUSD can subsequently integrate with retail banking, card payment settlements, and the Galileo network, its impact will not only be reflected in adding a new stablecoin, but may also drive stablecoins to penetrate deeper into everyday financial services.
