First Ever Bank-Issued Stablecoin from SoFi: A New Era in Crypto

The launch of SoFiUSD marks a historic milestone for the crypto industry. In December 2025, SoFi became the first U.S. nationally chartered bank to issue a bank-issued stablecoin on a public, permissionless blockchain. This move positions SoFi not only as a fintech innovator but also as a pioneer in merging traditional banking infrastructure with on-chain finance.

As discussions around SoFi stablecoin adoption accelerate, many are asking: What does SoFi’s bank-issued stablecoin mean for the market? This updated article breaks down the significance, regulatory framework, and long-term implications for crypto and traditional finance.

SoFi Makes History With the First Bank-Issued Stablecoin

Source: Barron

SoFi officially announced the launch of SoFiUSD, a fully dollar-backed stablecoin issued directly by SoFi Bank, N.A., an OCC-regulated and FDIC-insured institution. This makes SoFi the first U.S. national retail bank to issue a stablecoin directly on a public blockchain.

Unlike previous stablecoins issued by private companies or crypto-native firms, SoFiUSD is backed one-to-one by cash reserves held at the Federal Reserve, eliminating exposure to commercial paper or yield-bearing instruments. This structure allows for immediate redemption and minimizes liquidity and credit risk.

This development confirms that SoFi launches the first ever bank-issued stablecoin for the crypto market, setting a regulatory and operational precedent for other U.S. banks.

READ ALSO: Why Analysts Predict Stablecoins Will Reach $1 Trillion in Circulation

How SoFiUSD Brings Stablecoins Inside the Banking System

Initially, SoFiUSD is being used for internal settlement operations, with plans to roll it out to SoFi members in the coming months. The stablecoin is designed to support a wide range of use cases, including:

• Crypto trading settlement

• Card network settlement

• Merchant payments

• International remittances

• Dollar-denominated balances for users in volatile currency regions

By embedding stablecoins directly into regulated banking infrastructure, SoFi crypto services now operate within a clearly defined legal framework. This marks a sharp contrast to previous years when regulatory uncertainty forced SoFi to pause crypto-related offerings in 2023.

GENIUS Act: The Regulatory Breakthrough Behind SoFi’s Stablecoin

The launch of SoFiUSD was made possible by the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), signed into law in July 2025.

The GENIUS Act created the first comprehensive federal framework for payment stablecoins, allowing insured depository institutions to issue stablecoins under strict conditions. These include:

• Full reserve backing

• Certified reserve reporting

• Continuous regulatory supervision

• Clear redemption guarantees

Updated guidance from the OCC and FDIC later confirmed that banks can legally engage in stablecoin issuance, custody, and tokenized settlement. This regulatory clarity ended years of uncertainty and opened the door for bank-issued stablecoins to enter the mainstream.

Why SoFi’s Stablecoin Signals a New Phase for Crypto Markets

The broader stablecoin market continues to expand rapidly, with total capitalization reaching approximately $309 billion, led by USDT and USDC. Analysts project this figure could exceed $3 trillion by 2030, driven by demand for faster settlement, lower cross-border costs, and global access to U.S. dollar liquidity.

In this context, SoFi’s stablecoin marks a new phase in bank-backed crypto assets. Unlike privately issued stablecoins, SoFiUSD operates under full federal oversight, potentially setting a new trust standard for institutional adoption.

This move also signals a strategic shift in how U.S. regulators view blockchain — no longer as an external risk, but as an integrated component of the financial system.

READ ALSO: UK Is Prioritizing Sterling Stablecoin Payments in the Next Year

Conclusion

The launch of SoFiUSD represents a defining moment for both crypto and traditional finance. As the first ever bank-issued stablecoin on a public blockchain in the United States, SoFi has established a regulatory-compliant blueprint for how banks can participate in on-chain finance.

For the broader market, this answers a critical question: What does SoFi’s bank-issued stablecoin mean for the market? It signals legitimacy, regulatory acceptance, and a future where stablecoins become a standard settlement layer within the global banking system.

As adoption grows, SoFi’s move could accelerate institutional confidence and reshape how digital dollars are issued, settled, and trusted worldwide.

For more in-depth crypto market updates and predictions, check out the latest posts on the Bitrue blog — or explore trading directly on Bitrue’s platform.

FAQ

What is SoFiUSD?

SoFiUSD is a dollar-backed stablecoin issued by SoFi Bank, N.A. on a public blockchain.

Why is SoFi’s stablecoin important?

It is the first bank-issued stablecoin from a U.S. nationally chartered bank.

Is SoFiUSD fully regulated?

Yes, it is issued by an OCC-regulated, FDIC-insured institution.

What law enables SoFi to issue a stablecoin?

The GENIUS Act, signed into law in July 2025.

Will SoFiUSD be available to retail users?

Yes, SoFi plans to roll it out to members after internal settlement testing.