SoFi launches SoFiUSD stablecoin on Polygon
U.S. financial services company SoFi has expanded support for its dollar-backed stablecoin SoFiUSD by adding the Polygon blockchain. More than 17 million customers will now be able to buy, sell, hold, and convert digital dollars directly within the SoFi app without using separate crypto wallets.
Polygon Labs shared the announcement with Traders Union. SoFiUSD is issued by SoFi Bank, N.A., a U.S. national bank regulated by the Office of the Comptroller of the Currency (OCC). According to the developers, it is the first stablecoin issued by a U.S. national bank.
SoFiUSD was previously available on the Ethereum and Solana networks. The addition of Polygon marks the next stage in the project's expansion, aimed at using digital dollars for payments, international transfers, and business settlements.
The stablecoin is pegged to the U.S. dollar and can be redeemed for U.S. dollars at a 1:1 ratio.
Payments without separate crypto wallets
The main advantage of the new integration is that SoFi users will not need to create separate cryptocurrency wallets or manually transfer tokens between different blockchains. All necessary transactions will be available directly within the banking app.
This is made possible by Polygon Open Money Stack, a payments infrastructure platform that connects bank accounts, crypto wallets, currency conversion, and cross-chain transfers. The platform allows financial companies to process stablecoin transactions through a single system without integrating multiple separate services.
SoFiUSD will join other stablecoins already supported by the platform, including USDT, USDC, and PYUSD. In the future, businesses could use it for payroll payments, supplier settlements, and international money transfers.
"SoFi is well positioned to bring stablecoins into mainstream finance because it combines the regulatory foundation of a national bank with the reach of a major technology platform," said Marc Boiron, CEO of Polygon Labs.
Polygon expands its presence in the payments industry
The integration of SoFiUSD comes amid growing interest from banks and payment companies in blockchain technology. Stablecoins are increasingly being viewed not only as tools for cryptocurrency trading but also as a way to accelerate international settlements and reduce transfer costs.
According to Polygon Labs, the total volume of stablecoin transfers on the Polygon network has exceeded $3 trillion since its launch. The company also noted that Visa and Mastercard support stablecoin settlement through the network, while payment service provider Stripe uses Polygon to process USDC payments for merchants in more than 150 countries.
However, SoFiUSD differs from traditional bank money in several important ways. Although the token is issued by a regulated bank, it is not considered a bank deposit and is not covered by insurance from the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC).
In addition, SoFiUSD is not bank-guaranteed and is not legal tender. As a result, using the stablecoin involves risks that differ from those associated with holding money in a traditional bank account.
As a reminder, in March, SoFi and Mastercard launched settlements using the SoFiUSD stablecoin.
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