SoFi Bank is poised to launch SoFiUSD, described as a fully reserved U.S. dollar stablecoin. The bank said the stablecoin would be available to its clients and other consumers, and it aims to have other banks use its infrastructure to issue white-labeled stablecoins, with SoFi sharing most of the revenues.
Because SoFi Bank is an insured depository institution, the stablecoin reserves could earn interest by staying in its master account at the Federal Reserve, potentially reducing redemption risk. The issuer noted a design where the asset is treated as a deposit token when held on SoFi’s platform—earning interest and FDIC insurance—while holdings elsewhere would count as a stablecoin with no interest or insurance.
The model raises the possibility of segregating the money from other operations by placing reserves in a sub-account at the Fed. If a SoFi Bank client holds the digital asset on the SoFi platform, it will be treated as a deposit token and eligible for interest and FDIC insurance; holdings of the SoFiUSD token elsewhere would be treated as a stablecoin, with no interest or insurance.
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