Hot news continues to pour out of the United States today regarding the cryptocurrency sector. After the FED and the SEC, a major bank also made a crucial decision.
According to Coindesk, US banking giant SoFi Bank has introduced SoFiUSD, the first stablecoin launched by a US national bank.
As a result, SoFi Bank launched SoFiUSD, the first stablecoin issued by a US national bank and backed by cash held by the US Federal Reserve.
This cryptocurrency is issued by SoFi Bank, a nationally authorized and FDIC-insured institution, making it the first U.S. national bank to offer open access to stablecoin infrastructure.
Additionally, unlike stablecoins issued by cryptocurrency-focused companies, SoFiUSD is fully backed 1:1 by cash held at the FED, meaning users can withdraw instantly without facing credit or liquidity risk.
The new stablecoin is designed to improve the efficiency of payments for businesses and financial institutions.
SoFiUSD offers instant, low-cost payments and 24/7 real-time payment capabilities via public blockchains.
Initially limited to internal use only, SoFiUSD is expected to be offered to SoFi members in the coming months as part of a broader payments strategy.
*This does not constitute investment advice.