US-based BitGo Bank & Trust, N.A., a digital asset trust bank and subsidiary of BitGo Holdings regulated by the OCC, has been chosen to provide stablecoin infrastructure services and support distribution for SoFiUSD, a US dollar-pegged stablecoin issued by SoFi Bank, N.A.
SoFiUSD is noted as the first stablecoin issued by a US nationally chartered and insured deposit bank on a public, permissionless blockchain.
Using its Stablecoin-as-a-Service platform, BitGo offers the technological and operational infrastructure for SoFi Bank to issue SoFiUSD. BitGo will also work with payments providers, market participants, and exchanges to enhance institutional access to and integration of SoFiUSD within the digital asset ecosystem.
Structural and compliance features
SoFiUSD is issued on a 1:1 basis with the US dollar, backed by reserve attestations from third-party auditors for transparency. Both SoFi Bank, N.A. and BitGo Bank & Trust are overseen by the OCC, a factor both companies highlight as crucial to their compliance framework.
BitGo’s infrastructure for the token includes smart contracts and custody capabilities equipped with access controls and compliance features designed for institutional minting, burning, and transaction processing. The platform is intended to facilitate more efficient settlement, round-the-clock liquidity, and interoperability between traditional banking systems and blockchain networks.
Mike Belshe, CEO and co-founder of BitGo, stated that the company’s Stablecoin-as-a-Service offering was tailored for institutions needing technology paired with a strong foundation of trust. He views SoFiUSD as an embodiment of the convergence between compliant banking practices and blockchain efficiency.
Simon Griffin, Business Lead for Crypto Distribution at SoFi, explained that the partnership with BitGo aims to expand institutional access to SoFiUSD, considering the token essential infrastructure enabling the next phase of digital finance through this collaboration.
Market context
The collaboration between SoFi and BitGo is part of a broader trend involving OCC-regulated institutions building stablecoin issuance infrastructure. The involvement of both SoFi Bank, N.A., and BitGo Bank & Trust as OCC-regulated entities reflects an emerging model for regulated stablecoin issuance that addresses significant institutional concerns about counterparty risk and regulatory oversight.
