SoFi Joins Stablecoin Race With Ethereum-Based Token

Digital bank operator SoFi Technologies Inc. has launched its own US dollar stablecoin, joining a growing list of financial firms betting on what is seen as a critical component of the digital asset economy.

The company’s chartered bank has started issuing SoFiUSD, fully backed one-to-one with cash reserves, and is using it for internal settlements, SoFi announced Thursday. It will be made available to SoFi members “in the coming months,” the company said.

The San Francisco-based fintech company is positioning the token as a tool for 24/7 settlement across card networks, retailers and businesses, calling it a “key element” for ...