SoFi Technologies has selected BitGo Bank & Trust as its technology and infrastructure partner to support SoFiUSD, a stablecoin issued by SoFi Bank.
BitGo, through its Stablecoin-as-a-Service platform, will provide technology and operational infrastructure that will enable SoFi to issue SoFiUSD on a public, permissionless blockchain.
The platform targets forward-looking institutions that need both modern technology and a trusted foundation, BitGo CEO Mike Belshe said in a statement.
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 partnerships with payment providers, exchanges and market participants to enable institutional access and integration of SoFiUSD into the digital asset ecosystem.
SoFiUSD functions similarly to a tokenized bank deposit, allowing holders to redeem the asset on demand while transferring value almost instantaneously across public blockchains.
The token is designed for business settlement, fintech platform integration and payment applications in SoFi and the Galileo Financial Technologies infrastructure, as well as for 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 partnership,” said Simon Griffin, Business Lead for Crypto Distribution at SoFi.
The partnership signals a growing convergence between traditional banking infrastructure and blockchain-based payment rails.
Stablecoins have emerged as essential conduits for crypto markets, facilitating trading, lending and cross-border transactions, with settlement times measured in minutes rather than days.
The global market capitalization of stablecoins has soared as institutional participants increasingly see the utility of dollar-denominated tokens operating on blockchain networks.
Revelation: This article was edited by Vivian Nguyen. For more information about how we create and review content, see our Editorial Policy.