SoFi’s bank-issued stablecoin, SoFiUSD, is now available on the Polygon blockchain.
Polygon Labs announced on Thursday, 12 November, that SoFiUSD is live on its Open Money Stack. The token, which SoFi describes as the first stablecoin issued by a US national bank, already runs on Ethereum and Solana.
SoFi’s more than 17 million members can now buy, sell, hold and convert SoFiUSD on Polygon within the SoFi app, without needing a separate crypto wallet or moving funds between blockchains themselves.
What the stack does
Open Money Stack is a payments layer that combines moving money in and out of traditional bank accounts, built-in wallets and settlement across blockchains in a single integration. According to Polygon, Visa, Mastercard and Stripe already use it, and SoFiUSD joins stablecoins including USDC, USDT and PayPal’s PYUSD on the platform.
“SoFi is well positioned to bring stablecoins into mainstream finance,” said Marc Boiron, chief executive of Polygon Labs.
How SoFiUSD works
SoFiUSD can be redeemed one-for-one for US dollars. It is issued by SoFi Bank, which is regulated by the Office of the Comptroller of the Currency (OCC).
SoFi says the token is a payment stablecoin, not a bank deposit. It is not covered by FDIC or SIPC insurance, is not guaranteed by the bank and is not legal tender.
SoFi launched SoFiUSD on Ethereum and Solana late last year. The company’s card programme also settles payments over Mastercard’s network in SoFiUSD.
What happens next
The Polygon launch puts a bank-issued stablecoin on the same payments rails as the largest dollar stablecoins. How quickly SoFi’s members and merchants take it up will show whether bank-issued tokens can compete with USDC and USDT.
