SoFi Launches US Dollar Stablecoin Through Its Banking Subsidiary

SoFiUSD Launch: SoFi Technologies has introduced SoFiUSD, a US dollar stablecoin fully backed by cash reserves at SoFi Bank, designed for low-cost settlements across various platforms and initially issued on the Ethereum network.

Market Impact: Following the announcement, SoFi's stock price rose by approximately 5%, reflecting a significant increase of over 70% in the past six months, indicating positive market reception.

Banking Sector Interest: Major US banks, including JPMorgan Chase and Bank of America, are exploring stablecoins for digital payments, spurred by the regulatory clarity provided by the GENIUS Act, which was passed in July.

Regulatory Concerns: While banks are interested in stablecoins, there are concerns about yield-bearing stablecoins potentially diverting deposits from traditional banking, leading to calls for tighter regulations to close existing loopholes in the GENIUS Act.