The Ethereum and Solana-based SoFiUSD has become the first national bank-issued stablecoin to launch on an official banking platform.
SoFi Has Made Its Stablecoin Available On Its Retail Banking App
As announced in a press release, SoFi Technologies has rolled out its stablecoin to the official SoFi banking app, which hosts a userbase of nearly 15 million members. SoFi, short for Social Finance, is a financial technology company based in the United States that operates as a direct bank with a national charter.
In December, SoFi launched a stablecoin called SoFiUSD, becoming the first national bank in the US to issue a stablecoin on a public blockchain. Back then, the token was only available for internal settlement activity and institutions/developers, with the firm noting that broader availability would arrive in the coming months. That launch finally appears to be here.
SoFi members can now buy, sell, and hold SoFiUSD directly within the app. “This marks the first time that a U.S. national bank-issued stablecoin is available directly on a banking app,” said the announcement.
Stablecoins are cryptocurrencies that have their value pegged to a fiat currency. As SoFiUSD’s name suggests, it’s a token backed by the US Dollar, which is the most in-demand currency for these digital assets. Currently, the cryptocurrency is available on Ethereum and Solana, two of the most-used networks for transactions.
Anthony Noto, SoFi CEO, said:
People no longer have to choose between blockchain technology and regulated banking products. With SoFiUSD, we’re giving our members a single place to buy, hold, and pay with digital assets in the same app they already use to save, spend, borrow, and invest.
SoFiUSD isn’t SoFi Technologies’ first foray into the digital-asset sector. As reported by Bitcoinist, the bank became the first of its kind to offer cryptocurrency trading to US customers back in November.bToday’s launch isn’t the end of SoFi’s digital-asset journey, either, as the announcement revealed that it’s only the first phase of a broader roadmap to integrate stablecoin utility across the bank’s ecosystem.
In the next few weeks, the FinTech platform is planning to allow members to convert SoFiUSD to tokenized deposits, offer 24/7 global mobility via the blockchain, and release its stablecoin on its first centralized exchange partner, Bullish.
The press release also noted that networks beyond Ethereum and Solana are planned for the stablecoin, although it’s not yet known which blockchains will be supported or when a rollout will occur.
Ethereum Has Declined Under The $2,000 Level
The cryptocurrency market has suffered a bearish blow during the past day, and Ethereum, the second-largest token by market cap, has been among the worst performers out of the top coins.
After a drop of more than 4% during the last 24 hours, ETH has slipped below $2,000 for the first time since late March.
The trend in the price of Ethereum over the last five days | Source: ETHUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
