SoFi Ditches Third-Party Stablecoins for Its Own Digital Dollar

SoFi has switched its $25B card business to use its own stablecoin, SoFiUSD. This move is significant because it uses Mastercard's global payments network for settlement. The program is expected to process over $25 billion in annualized volume.

This development raises a competitive question for Ripple's RLUSD: if regulated banks can issue their own stablecoins and plug them directly into global payment networks, will they still need third-party stablecoins?

SoFiUSD is issued by SoFi Bank, a nationally chartered U.S. bank regulated by the Office of the Comptroller of the Currency. The token is redeemable 1:1 for U.S. dollars and backed primarily by cash reserves.