SoFi Technologies has selected BitGo Bank & Trust as its technology and infrastructure partner to support SoFiUSD, a stablecoin issued by SoFi Bank.
Through its Stablecoin-as-a-Service platform, BitGo provides the technology and operational infrastructure that enables SoFi to issue SoFiUSD on a public, permissionless blockchain.
BitGo CEO Mike Belshe said in a statement that the platform is aimed at forward-thinking institutions that need both cutting-edge technology and a reliable foundation.
He noted that SoFiUSD shows how regulated banking can be combined with blockchain efficiency, while BitGo provides the infrastructure for secure and scalable issuance.
The OCC-regulated digital asset trust bank will also provide distribution support, including collaboration with payment providers, exchanges and market participants to enable institutional access and integration of SoFiUSD into the digital asset ecosystem.
SoFiUSD acts like a tokenized bank deposit that allows its holders to instantly redeem an asset on demand while transferring value via public blockchains.
The token is intended for enterprise settlements, fintech platform integration and payment applications across SoFi and Galileo Financial Technologies infrastructure, as well as consumer and merchant transactions.
“This isn’t just a new token; it’s a critical piece of infrastructure that will unlock the next phase of digital finance for thousands of institutions through our partnerships,” said Simon Griffin, head of crypto distribution business at SoFi.
The partnership signals the growing convergence between traditional banking infrastructure and blockchain-based payment rails.
Stablecoins have emerged as an important conduit for crypto markets, facilitating trading, lending and cross-border transactions that take settlement times in minutes, not days.
The capitalization of the global stablecoin market has expanded significantly as institutional participants recognize the benefits of dollar tokens running on blockchain networks.
