Key takeaways
- SoFiUSD (SOFID) is a stablecoin, a crypto asset designed to hold a steady value of about one US dollar rather than move up and down in price.
- It is issued by SoFi Bank, N.A., a nationally chartered US bank regulated by the Office of the Comptroller of the Currency. Every SOFID is intended to be redeemable 1:1 for US dollars, with reserves held in high quality, highly liquid cash or cash equivalents.
- SoFi publishes monthly attestation reports covering the assets supporting outstanding SOFID.
- SOFID can be sent, held and transferred 24/7 on supported networks, and withdrawn directly to any Solana or Ethereum wallet address.
- SOFID is not a deposit, is not insured by the FDIC or SIPC, and is not legal tender. It does not pay interest or yield.
- SOFID is trading on Kraken.
What is SoFiUSD?
Most crypto assets move in price. Stablecoins are built to do the opposite. A stablecoin is a token designed to hold a steady value against a reference currency, in this case the US dollar, so it can be used to pay, hold and settle without the value shifting underneath you.
Most stablecoins are issued by fintechs or trust companies. SOFID is the first stablecoin issued by a US national bank, bringing a new level of credibility to how you hold and move value. SOFID is designed to enable 24/7 settlement and programmable dollar movement. One SOFID is redeemable 1:1 for one dollar.
That difference is structural. Because SoFi Bank, N.A. issues SOFID directly, the reserves, the redemption obligation and the federal supervision all sit inside the same institution rather than being spread across a token issuer, a banking partner and an outside custodian. SoFi Bank is a nationally chartered US bank regulated by the Office of the Comptroller of the Currency, the federal agency that supervises national banks. SOFID is where banking standards meet crypto flexibility.
SoFi first announced SoFiUSD in December 2025 for internal settlement and institutional partners, then opened it to its members in May 2026. The company reported 14.7 million members at that point and now reports more than 15 million. SOFID is available across a growing network of partner platforms. It became available to trade on Kraken in September 2026.
What backs SOFID
For anyone holding SOFID, that structure shows up in three places:
- Redeemable 1:1. Every SOFID is intended to be redeemable 1:1 for US dollars. According to SoFi, the bank maintains liquid assets to support all outstanding SOFID, held in high quality, highly liquid cash or cash equivalents in accordance with applicable law and the SOFID Terms of Use. Reserves are backed primarily by cash and are not dependent on commercial paper or other credit-sensitive instruments, and are structured to support prompt redemption at par, subject to applicable terms and conditions.
- Issued by a nationally chartered bank. SoFi Bank is regulated by the OCC, which SoFi describes as bringing federal oversight to a stablecoin. The bank is subject to capital, liquidity and risk management standards as a condition of its charter.
- Independently attested. SOFID reserves are subject to periodic independent attestation reporting by a third-party accounting firm. SoFi publishes these monthly, with reports covering March through July 2026 available on the SOFID page at the time of writing. Each report sets out the assets supporting outstanding SOFID as of its reporting date.
One thing to be clear about, and SoFi says this plainly too: SOFID is not a bank deposit. It is not insured by the FDIC or SIPC and it is not legal tender. Holding or transacting in SOFID involves risk and may be subject to delays, disruptions or permanent loss, and blockchain transactions are generally final and irreversible. Secondary market prices may sit slightly above or below one dollar, and redemption at par is conducted by SoFi Bank with approved customers under separate agreements.
How does SOFID work?
Dollars in, tokens out
SOFID is created and destroyed rather than mined or farmed. Tokens are minted against cash coming in and burned when someone redeems, so the supply expands and contracts with demand. There is no maximum supply, no token sale, no allocation chart and no vesting schedule of the kind attached to most crypto assets. SOFID was not distributed through a fundraise. It is created against reserves.
Where it runs
SOFID is issued on Ethereum and Solana, and holders can withdraw directly to any Solana or Ethereum wallet address. SoFi has said Solana was selected for settlement speed, throughput and lower transaction costs, and that further networks may be added.
Running on public blockchains is what gives SOFID its timing advantage over a traditional transfer. SoFi’s framing is that SOFID moves on your own schedule: send, hold and transfer 24/7 on supported networks, with no banking hours and no settlement delays.
Built for everyday use
SoFi positions SOFID for peer-to-peer payments and on-chain transactions rather than as something to hold and watch. Members can buy, sell, hold and convert it inside the SoFi app, and the token is available on partner platforms including Kraken, with SoFi saying more are coming.
How is SOFID used?
- Consumers can buy, sell, hold and convert SoFiUSD in the SoFi app, trade it on Kraken, and use it for peer-to-peer payments and on-chain transactions at any hour.
- Traders can use SOFID as a dollar-denominated asset for settling positions and holding value between trades without leaving the crypto ecosystem.
What SoFi says is next
SoFi has said it is building a way for holders to convert SOFID into a tokenized deposit inside the SoFi app. SoFi describes tokenized deposits as digital representations of traditional deposit liabilities of SoFi Bank, legally classified as bank deposits rather than payment stablecoins, and therefore eligible for FDIC insurance and for interest payment. Separate deposit account terms apply. This is a separate product still in development, and it does not change what SOFID is today: SOFID remains a payment stablecoin, is not a deposit, is not FDIC insured and does not pay interest.
The bigger picture
Stablecoins have become the plumbing of crypto markets. They are how value moves between venues, how traders hold dollars without leaving the ecosystem, and increasingly how companies settle payments across borders. Their success depends on trust and acceptance rather than price performance.
Consolidating issuance inside a bank removes intermediaries, and it also concentrates the token’s risk profile in one institution, a different shape of risk from stablecoins backed by diversified reserve portfolios.
The launch fits a broader move by established financial institutions to put dollar balances on public blockchains.
Start trading SoFiUSD
Now that you have learned all about SoFiUSD, are you ready to take the next step? Kraken lets you trade SOFID and 300+ other types of cryptocurrencies.
Interested in adding SOFID to your portfolio?
SOFID stablecoin is not FDIC insured, is not bank guaranteed and may lose value.
The post Token Spotlight: What is SoFiUSD (SOFID)? appeared first on Kraken Blog.
