SoFi expands bank-issued stablecoin to Polygon's payments infrastructure

Polygon Labs announced Thursday that SoFiUSD is available through Polygon's Open Money Stack. SoFiUSD is the first stablecoin issued by a U.S. national bank. The expansion adds Polygon to the token's existing networks, Ethereum and Solana.

SoFi's more than 17 million members can purchase, sell, retain and convert SoFiUSD on Polygon within the SoFi app. Members do not need a separate crypto wallet or have to bridge assets manually between networks. Open Money Stack combines embedded wallets, fiat entry and exit services, and cross-chain settlement through one integration.

SoFiUSD joins USDC, USDT and PayPal's PYUSD on Open Money Stack. Businesses can connect SoFiUSD to wallets, banking infrastructure and local currencies for payouts, settlement and international transfers. Visa, Mastercard and Stripe already use the stack. Stablecoins are expanding beyond cryptocurrency trading into card settlement, business payments and international money transfers. Polygon Labs CEO Marc Boiron said SoFi's national-bank regulatory foundation and broad consumer and enterprise technology reach position SoFi well to bring stablecoins into mainstream finance.

SoFi Bank issues SoFiUSD under the supervision of the Office of the Comptroller of the Currency. Holders can redeem SoFiUSD for U.S. dollars at a one-to-one ratio. SoFi introduced the token late last year on Ethereum and Solana. SoFiUSD already handles settlement for SoFi's entire card program through Mastercard's network. SoFi also recently introduced SoFi Earn, a tokenized deposit offering a 4.40% yield. SoFi Earn converts into SoFiUSD at a one-to-one ratio.

Polygon recently made Open Money Stack available on Solana. Polygon says the network has handled more than $3 trillion in stablecoin transfers over the network's lifetime. Visa and Mastercard enable stablecoin settlement on Polygon. Stripe routes merchants' USDC payments through Polygon in more than 150 countries.

SoFiUSD is classified as a payment stablecoin rather than a bank deposit. SoFiUSD has no FDIC or SIPC insurance, carries no bank guarantee and is not legal tender.