$SOFI (+3,98%) stated that the cryptocurrency will enable the company to act as an infrastructure provider for stablecoins for banks, FinTechs and corporate platforms. As SoFiUSD is based on a public, permissionless blockchain, partners can transfer funds around the clock and realize near real-time settlement "at fraction-of-a-cent prices", the statement said.
This allows them to better manage liquidity and offer faster and more transparent services to their clients, the company added, noting that SoFiUSD will soon be available to all SoFi members.
"Blockchain is a technological supercycle that will fundamentally change finance, not just in payments, but in all areas of money," said Anthony Noto , CEO of SoFi.
"With SoFiUSD, we're leveraging the infrastructure we've built over the last decade to address real-world challenges in the financial services sector. Companies today struggle with slow settlement times, fragmented providers and unsecured reserve models. SoFi is helping to close these gaps by combining our regulatory strength as a national bank with transparent, fully reserved on-chain technology to provide our partners with a more secure and efficient way to transfer funds."
"And for businesses operating in countries with volatile currencies, SoFi plans to deploy SoFiUSD as a collateralized dollar-denominated asset in a consumer debit or collateralized loan account," the release continues.
SoFi reached another milestone in the digital asset space last month when it announced it was the first nationally licensed bank to offer retail cryptocurrency trading .
SoFi added " crypto-based features " to its digital financial services in June, stating that this is just one of many new offerings in the cryptocurrency and blockchain space.
This week, it was announced that JPMorgan Chase is ramping up its blockchain activities with the first tokenized money market fund, while $HSBA (+1,91%) $swiftSwift and Ant International last week tested a new cross-border payment solution based on Ant's proprietary and permission-based private blockchain and HSBC's internal tokenization platform.
"This is not a rejection of the technical model of blockchain, but an implicit stance that existing open blockchain networks are not necessarily compatible with the operational realities of regulated finance," PYMNTS wrote.
Source: https://www.pymnts.com/
