SoFi Brings Its Bank-Issued Stablecoin to Polygon’s Payments Stack

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Key takeaways

SoFi expanded SoFiUSD to Polygon's Open Money Stack, joining Ethereum and Solana.
The token is redeemable one-to-one for U.S. dollars and issued by a U.S. national bank.
Polygon has processed over $3 trillion in lifetime stablecoin transfer volume.

SoFi is widening the reach of its digital dollar, bringing SoFiUSD, the first stablecoin issued by a U.S. national bank, onto Polygon’s payments infrastructure as banks and fintechs push stablecoins deeper into everyday money movement.

Polygon Labs said Thursday that SoFiUSD is now live on Polygon Open Money Stack, a payments layer that bundles fiat on- and off-ramps, embedded wallets and cross-chain settlement into a single integration.

The move adds Polygon alongside Ethereum and Solana, the networks SoFiUSD already runs on, and lets SoFi’s more than 17 million members buy, sell, hold, and convert the token on Polygon directly in the SoFi app, without opening a separate crypto wallet or manually bridging assets between chains.

Mainstream finance adoption

“SoFi is well positioned to bring stablecoins into mainstream finance because it combines the regulatory foundation of a national bank with the reach of a major consumer and enterprise technology platform,” said Marc Boiron, CEO of Polygon Labs.

The expansion lands as stablecoins move beyond crypto trading into the plumbing used to settle card payments, pay businesses, and send money across borders.

On Polygon Open Money Stack, SoFiUSD joins USDC, USDT and PayPal’s PYUSD, and can connect to the wallets, banking rails, and local currencies businesses need for payouts, settlement and cross-border transfers, opening up uses well beyond consumer trading.

Regulatory and market context

The token is redeemable one-to-one for U.S. dollars and issued by SoFi Bank, which is regulated by the Office of the Comptroller of the Currency.

SoFi launched SoFiUSD late last year across Ethereum and Solana as the first stablecoin from a U.S. national bank, and it already settles the company’s entire card program over Mastercard’s network. The firm has been building out a broader digital-money suite, recently launching SoFi Earn, a tokenized deposit that pays 4.40% yield and converts one-to-one into SoFiUSD.

For Polygon, the addition deepens a payments business that has become one of the network’s calling cards.

Polygon recently extended Open Money Stack to Solana, and the chain has processed more than $3 trillion in lifetime stablecoin transfer volume, according to the company. Visa and Mastercard support stablecoin settlement on Polygon, while Stripe uses it to route USDC payments for merchants in more than 150 countries.

SoFiUSD is a payment stablecoin, not a bank deposit, and is not FDIC- or SIPC-insured, bank-guaranteed or legal tender.

Source: decrypt.co

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