A Variety of Use Cases

The introduction of SoFiUSD provides a pathway for banks, fintechs, and enterprise partners to utilize SoFi’s infrastructure for their own branded stablecoins. This offering is anticipated to simplify the process for integrating white-label stablecoins into settlement and payment processes.

SoFiUSD is already facilitating internal transactions, with plans to expand its reach to SoFi members in the near future. According to reports, the initial rollout will be on the Ethereum blockchain, with further plans to support multiple blockchains to enhance accessibility.

Exploring Various Applications

The initiative aims to cater to a diverse range of industries including card networks, retailers, and other businesses that require faster, lower-cost payment solutions. Additionally, the stablecoin could facilitate cross-border transactions with near-instant settlements, addressing volatility concerns in regions with fluctuating currencies.

The Role of Banks

Historically, white-label stablecoins have been pioneered by crypto-focused companies such as Paxos and BitGo. Around the same time, Coinbase announced a service to enable branded stablecoin issuance for organizations looking into this solution. For entities considering their own stablecoin projects, working with SoFi offers the advantage of leveraging a well-established bank’s infrastructure, including regulatory compliance and operational support.

However, some experts argue that traditional banks might not be the only choice. “While partnerships with established institutions provide comfort due to familiarity,” noted Joel Hugentobler from Javelin Strategy & Research, “it’s important not to overlook other options where banks may not offer a clear value proposition.”