SoFiUSD (SOFID): Bank-Issued Stablecoin Runs on Ethereum and Solana

SoFiUSD (SOFID) combines dollar redemption with transfers on public blockchains. SoFi Bank, N.A. issues the stablecoin, which is designed to be redeemable one for one for US dollars and is available on Ethereum and Solana. That structure gives users a way to move dollar-denominated value at any hour, while tying the token’s reserves and redemption process to a single bank.

The distinction matters for holders: SOFID is not a bank deposit, has no FDIC or SIPC insurance, and pays no interest or yield. Its market price can also move slightly above or below one dollar. The token is available to trade on Kraken, but its stated redemption terms apply through SoFi Bank to approved customers under separate agreements.

Issuance and reserves

SOFID is created when cash enters the system and destroyed when tokens are redeemed. It is not mined or farmed, and the source describes no maximum supply, token sale, fundraising distribution, allocation chart or vesting schedule. In this model, supply expands and contracts with demand rather than following a fixed issuance schedule.

SoFi says outstanding tokens are supported by high-quality, highly liquid cash or cash equivalents, with reserves backed primarily by cash rather than commercial paper or other credit-sensitive instruments. The stated aim is to support prompt redemption at par, subject to the token’s terms and other applicable conditions. A one-to-one redemption design is not the same as a guarantee that every holder can redeem directly whenever they choose: SoFi Bank handles redemption for approved customers under separate agreements.

SoFi publishes monthly reports from a third-party accounting firm attesting to the assets backing outstanding SOFID at each report’s date. Reports covering March through July 2026 were available on SoFi’s SOFID page at the time described in the source. These snapshots give readers a way to review reported backing, though they don’t remove the need to consider redemption access, timing and the possibility of disruptions.

SoFi Bank is a nationally chartered US bank supervised by the Office of the Comptroller of the Currency. According to SoFi, the bank is subject to capital, liquidity and risk management standards. Issuing the token inside the bank brings the issuer, reserve management and redemption obligation together in one institution. That arrangement reduces the number of parties involved, while concentrating exposure in the issuing bank.

Networks and transfers

SOFID runs on Ethereum and Solana, and holders can withdraw it directly to wallet addresses on either network. SoFi has cited Solana’s settlement speed, throughput and lower transaction costs as reasons for choosing it, and says it may add other networks. Network support matters in practice: a transfer depends on the recipient address and the blockchain selected, so users need to ensure the two match.

Public blockchains allow SOFID to be sent, held and transferred 24/7 on supported networks, without waiting for bank operating hours. The token is intended for payments and on-chain settlement, including peer-to-peer transfers. But blockchain transactions are generally final and irreversible. A mistaken address or other transfer problem can lead to permanent loss, and activity may face delays or interruptions.

Who can use SOFID

SoFi members can buy, sell, hold and convert the token in the SoFi app. SOFID is also available through partner platforms, including Kraken, where it became available to trade in September 2026. SoFi first announced the token in December 2025 for internal settlement and institutional partners, then opened access to members in May 2026. At that point, the company reported 14.7 million members; it now reports more than 15 million.

Consumers may use SOFID for peer-to-peer payments or blockchain transactions. Traders can use it as a dollar-denominated asset for settling positions or holding value within crypto markets. Neither use makes the token a savings product: SOFID does not pay interest, and its price on secondary markets may diverge slightly from one dollar.

SoFi’s product description also draws a clear boundary around the token’s protections. SOFID is not legal tender or a bank deposit, and it is not insured by the FDIC or SIPC. Holders should account for those limits alongside the stated reserve backing and monthly attestations.

A separate deposit product is in development

SoFi says it is building a way for users to convert SOFID into a tokenized deposit inside its app. The company describes that future product as a digital representation of a SoFi Bank deposit liability, with separate account terms and potential eligibility for FDIC insurance and interest. It remains a distinct product under development. It does not change SOFID’s current status as a payment stablecoin without deposit insurance or interest.

Stablecoins are widely used to move value between crypto venues and settle transactions while remaining on-chain. SOFID’s bank-based issuance gives it a different structure from tokens whose reserves and redemption arrangements involve separate firms. The trade-off is concentrated institutional exposure: the same bank sits at the center of issuance, reserves and redemption. For users, the practical questions are how access to redemption works, what each attestation reports, and how reliably the supported networks and services operate.

SOFID can be traded on Kraken. The token may lose value, and its design does not make it a bank deposit or a bank-guaranteed asset.

The source article appeared on Kraken Blog.