SoFi Technologies has selected BitGo Bank & Trust as its technology and infrastructure partner to support SoFiUSD, a SoFi Bank-issued stablecoin.
BitGo, through its Stablecoin-as-a-Service platform, will deliver technology and operational infrastructure that allows 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 showcases how regulated banking can combine with blockchain efficiency while BitGo supplies the infrastructure for safe and scalable issuance.
The OCC-regulated digital asset trust bank will also provide distribution support, including collaborations with payment providers, exchanges, and market participants to enable institutional access and integration of SoFiUSD across the digital asset ecosystem.
SoFiUSD functions similarly to a tokenized bank deposit, allowing holders to redeem the asset on demand while transferring value across public blockchains near-instantaneously.
The token is designed for enterprise settlement, fintech platform integration, and payment applications across SoFi and its Galileo Financial Technologies infrastructure, as well as consumers’ and merchant transactions.
The partnership signals a growing convergence between traditional banking infrastructure and blockchain-based payment rails.
Stablecoins have emerged as essential plumbing for crypto markets, facilitating trading, lending, and cross-border transactions with settlement times measured in minutes rather than days.
Global stablecoin market capitalization has expanded greatly as institutional participants increasingly recognize the utility of dollar-denominated tokens operating on blockchain networks.
Source: https://cryptobriefing.com/sofi-taps-bitgo-support-distribution-sofiusd-stablecoin/
