Key Points
- SoFi has extended SoFiUSD — the first stablecoin issued by a national bank in the United States — to Polygon, adding support for Polygon in addition to Ethereum and Solana.
- This move promotes SoFiUSD to more deeply enter the payment infrastructure, joining USDC, USDT, and PYUSD in utilizing the same technology stack as Visa, Mastercard, and Stripe already in use.
- This is also a continuation of the SoFi digital currency strategy, encompassing the launch of SoFiUSD, its tokenized deposit product SoFi Earn, as well as Polygon's stablecoin payment business worth over $3 trillion.
SoFi is expanding the reach of its digital dollars by integrating SoFiUSD – the first stablecoin issued by a national bank in the United States – into the payment infrastructure of Polygon. At this time, banks and fintech companies are pushing stablecoins to become more deeply integrated into everyday financial transactions.
Polygon Labs stated on Thursday that SoFiUSD is now live with Polygon Open Money Stack. This payment layer integrates fiat currency deposit and withdrawal channels, embedded wallets, and cross-chain settlement into a single access point.
This move has made Polygon another network supported by SoFiUSD following Ethereum and Solana. It also allows over 17 million members of SoFi to directly buy, sell, hold, and convert this token within the SoFi application, without the need to open a separate cryptocurrency wallet or manually bridge assets between different chains.
Polygon Labs CEO Marc Boiron stated: " SoFi has the favorable conditions to bring stablecoins into mainstream finance, as it possesses both the regulatory foundation of national banks and the coverage capability of large consumer and enterprise technology platforms."
This expansion comes at a time when the uses of stablecoins are further expanding beyond encrypted transactions, entering into the underlying infrastructure for bank card payments and settlements, corporate payments, and cross-border remittances.
On Polygon Open Money Stack, SoFiUSD runs in parallel with USDC, USDT, and PayPal's PYUSD. It can connect the wallets, bank channels, and local currencies required by enterprises for payments, settlements, and cross-border transfers, thereby opening up a far broader range of use cases beyond consumer transactions.
This token can be exchanged at a 1:1 ratio for US dollars and is issued by SoFi Bank. It is regulated by the United States Monetary Supervision Agency (Office of the Comptroller of the Currency).
SoFi launched SoFiUSD at the end of last year on Ethereum and Solana, calling it the first stablecoin issued by a national bank in the United States. This stablecoin has already been used for settlements for the company's entire bank card portfolio through the Mastercard network. The company has also been expanding its range of digital currency products and recently introduced SoFi Earn – a tokenized deposit product that offers a yield of 4.40% and can be converted to SoFiUSD at a 1:1 ratio.
For Polygon, the addition of SoFiUSD has further strengthened its payment business, which has become a major hallmark of this network.
According to Polygon, Polygon has recently expanded Open Money Stack to Solana. The total scale of stablecoin transactions processed by this network has exceeded 3 trillion US dollars. Visa and Mastercard support stablecoin settlements on Polygon, while Stripe utilizes this network to route USDC payments for merchants in over 150 countries.
SoFiUSD is a type of payment-stablecoin, not a bank deposit; it is not covered by the insurance of FDIC or SIPC, nor does it fall under bank guarantees or legal tender.
