United States-based digital bank SoFi Technologies unveiled SoFiUSD, a 1:1 cash-backed U.S. dollar stablecoin issued by SoFi Bank. The move makes SoFi the first U.S. national bank to release an “open access” stablecoin as the line between traditional and digital finance continues to blur.

The neobank announced the move today, Dec. 18, just over one month after the bank relaunched crypto trading. SoFi products tout “bank-grade safety” that are able to be integrated with other leading traditional finance services. The firm said in the announcement that the stablecoin will use a "public, permissionless blockchain," without specifying which network, but noting that "partners can move funds around the clock with near-instant settlement at fractional-cent pricing."

SoFi says its stablecoin is backed 1:1 by cash reserves held in its Federal bank account, ensuring immediate redemption. The bank also noted that SoFiUSD can be used for settlement not only for its crypto trading offerings, but also across partner card networks and businesses, as well as international remittances and point-of-sale transactions made with SoFiPay.

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