SoFi Launches Bank-Backed Stablecoin with Enhanced Transparency

SoFi has introduced a new stablecoin, SOFIUSD, which offers a unique blend of traditional banking and cryptocurrency features. As a bank-backed stablecoin, SOFIUSD is backed by a reserve portfolio consisting of 85% short-term U.S. Treasury bills and 15% cash held at FDIC-insured institutions.

The reserves are verified monthly by Deloitte, providing transparency and accountability to users. This structure distinguishes SOFIUSD from algorithmic stablecoins, which rely on code and market incentives rather than actual dollar reserves.