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| By Mark Gough |
Another major finance company is moving into stablecoins.
SoFi has revealed plans for SoFiUSD — a U.S. dollar-backed stablecoin designed for digital payments and 24/7 transfers.
The token would be issued through SoFi Bank, N.A., putting the company alongside a growing list of traditional financial firms expanding into crypto infrastructure.
According to SoFi’s website, SoFiUSD will be backed mainly by cash and cash-equivalent reserves to maintain a 1:1 peg with the U.S. dollar. The company also notes that the token is not FDIC insured, is not considered a bank deposit and could lose value.
What matters here isn’t the headline. It’s the story behind it …
That is the fact that stablecoins are evolving beyond crypto trading.
Over the past few years, they have increasingly started to function as payment infrastructure: Transfers settle faster, markets remain open around the clock and money can move globally without relying entirely on banking systems that still operate on limited hours.
That utility is starting to attract banks, fintech firms and payment companies looking at how digital dollars could fit into the future financial system.
For years, the sector was largely dominated by crypto-native firms like Tether and Circle. Now, more traditional finance companies are moving into the space as stablecoins become increasingly tied to payments, settlement and digital commerce.
Traditional finance is slowly moving onto blockchain rails.
Savvy investors should start looking to reflect that reality in their portfolios.
Best,
Mark Gough
