Shares extend gains following digital asset launch
SoFi Technologies (NASDAQ:SOFI) climbed 7% on Friday, adding to a 5% advance recorded in the previous session after the financial technology company introduced SoFiUSD, a new U.S. dollar-backed stablecoin.
The launch marks a significant milestone for the company, which said SoFiUSD is the first stablecoin issued by a U.S. national bank and integrated directly into a banking platform.
Stablecoin now available to millions of users
SoFi announced that its nearly 15 million members can now buy, sell and hold SoFiUSD directly through the company’s mobile application.
The digital token is fully redeemable on a one-to-one basis for U.S. dollars through SoFi Bank, which maintains liquid reserves to back all outstanding SoFiUSD in circulation.
Management believes the product combines the efficiency of blockchain technology with the security and regulatory oversight associated with traditional banking institutions.
“At SoFi, we believe we can combine the speed and versatility of the blockchain with the trust of a bank to improve how money moves around the world,” said Anthony Noto, CEO of SoFi. “People no longer have to choose between blockchain technology and regulated banking products.”
Multi-network rollout supports broader adoption
At launch, SoFiUSD is available on both the Ethereum and Solana blockchain networks, with additional network integrations expected in the future.
The company said users will benefit from institutional-grade protections, including regular reserve attestations conducted by an independent Certified Public Accountant licensed in the United States.
These safeguards are intended to provide greater transparency and confidence for users holding the stablecoin.
Future plans include interest-bearing deposits
SoFi outlined an ambitious roadmap for expanding the functionality of SoFiUSD over the coming weeks.
Among the planned enhancements is the ability for customers to convert their stablecoin holdings into tokenised bank deposits. According to the company, this would allow users to earn interest while maintaining access to FDIC insurance coverage on eligible deposits.
The initiative reflects SoFi’s broader strategy of integrating blockchain-based products into regulated financial services.
Cross-border payments and institutional access on the horizon
The company also intends to introduce international transfer capabilities, enabling members to move funds across borders using SoFiUSD.
In addition, SoFi plans to make the stablecoin available through its first centralised exchange partner, Bullish, providing access for institutional market participants.
These developments could significantly broaden the stablecoin’s potential use cases beyond retail banking customers.
Full rollout expected in early June
Management said full availability of SoFiUSD is expected by early June as customers update to the latest version of the SoFi application.
Investors appeared to welcome the launch as a potential new growth avenue for the company, with the stock extending recent gains amid growing interest in regulated digital asset products and blockchain-based financial services.