The news: SoFi members will now be able to buy, sell, and hold the SoFiUSD stablecoin within the SoFi app, per a press release.

SoFi is the first FDIC-insured bank to issue a stablecoin. In the near future, it plans to expand its in-app crypto services to include:

• Converting SoFiUSD into tokenized deposits so customers can earn interest on FDIC-insured deposits
• Faster on-chain mobility for cross border payments
• Trading through its crypto exchange partner, Bullish, for institutional clients  

Why this matters: SoFi is positioning itself as a cutting-edge digital bank and crypto provider. This could make the bank more appealing to younger consumers, which SoFi is already courting with its credit card that offers 5% back on groceries. 

However, consumers aren’t that interested in crypto: Only 2.5% of the US population uses crypto payments, per our forecast. Remittance senders would remain on the top of that list thanks to lower fees and faster payments—a market that SoFi recently reentered.

Zooming out: Enterprises dealing with high cross-border payment volume could also be served by the lower fee structure of stablecoin payments and near-instantaneous settlement times. In 2024, global cross-border and crypto payment markets reached 1 quadrillion dollars, per the IMF. With crypto representing a sliver of that value, players like SoFi could benefit from flipping more of that volume onto on-chain rails.

Implications for payment providers: Crypto solutions can have material benefits in sectors like remittances, but they’re not going to move the needle for broad customer acquisition anytime soon. 

SoFi’s strategy of launching both stablecoins and tokenized deposits also risks confusing consumers to the point where they don’t use either—or creating an experience that leaves a bad taste in customers’ mouths. Banks that want to launch their own stablecoins need to come up with more concrete incentives for using them, and with the GENIUS Act, that can’t come in the form of interest.

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