SoFi is launching its own stablecoin, SoFiUSD, providing open access to its digital asset infrastructure. The offering will allow banks, fintechs, and enterprise partners to leverage SoFi’s operational framework to issue their own white-label stablecoins.
The stablecoin is already in use for internal settlement activities, with a rollout to SoFi members expected in the coming months. According to Decrypt, SoFi will initially launch the stablecoin on the Ethereum blockchain, with plans to expand to multiple blockchains over time for broader accessibility.
A Variety of Use Cases
The initiative gives SoFi’s partners and customers a much easier path to offer their own branded crypto solutions. They can integrate a white-label stablecoin into their settlement and payment flows using the company’s infrastructure. SoFi is targeting the stablecoin for use by card networks, retailers, and other businesses seeking faster, lower-cost payments.
The stablecoin could also enable cross-border and near-instant transactions, improving availability while reducing costs. For companies operating in countries with volatile currencies, SoFi plans to offer the coin as a dollar-denominated asset designed to mitigate currency fluctuations.
Is a Bank Necessary?
Past attempts at introducing white-label stablecoin have largely come from crypto-focused entities, including Paxos and BitGo. Around the same time as SoFi’s announcement, Coinbase launched a white-label service, allowing companies to issue branded stablecoins. For organizations exploring their own stablecoin, a full-service bank can offer a familiar, regulated option with a range of additional services already in place.
“Partners get a branded coin while SoFi provides regulatory, operations and reserves frameworks behind the scenes,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “The low-hanging fruit for this service are payment players like fintechs, PSPs, merchant acquirers, banks and credit unions, and remittance payout-type companies.”
That said, that sense of institutional comfort doesn’t necessarily mean a stronger value proposition for SoFi’s white-label customers.
“They may be more comfortable that way because that’s what they’re used to,” Hugentobler said. “But they’re kind of missing the whole point if they think that’s their first or best option. You don’t need a bank for all of this.”
