SoFi's Bank-Backed Stablecoin Muscles Onto Polygon's Payment Rails

Polygon Labs said Thursday that SoFiUSD is now running on Polygon Open Money Stack, a payments layer that packs fiat on- and off-ramps, embedded wallets and cross-chain settlement into one integration. The token joins USDC, USDT and PayPal's PYUSD on that stack, where it can plug into the wallets, banking rails and local currencies businesses use for payouts, settlement and cross-border transfers.

For SoFi's more than 17 million members, the upgrade means buying, selling, holding and converting SoFiUSD on Polygon directly in the SoFi app — no separate crypto wallet, no manual bridging between chains. The network joins Ethereum and Solana, where the token already lived.

"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.

SoFi launched SoFiUSD late last year as the first stablecoin issued by a U.S. national bank. It's 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. The token already settles SoFi's entire card program over Mastercard's network, and the company recently rolled out SoFi Earn, a tokenized deposit paying 4.40% yield that converts one-to-one into SoFiUSD.

Polygon gets a marquee name for a payments business it has been pushing hard. The company recently extended Open Money Stack to Solana, and says the chain has processed more than $3 trillion in lifetime stablecoin transfer volume. Visa and Mastercard support stablecoin settlement on Polygon, while Stripe uses it to route USDC payments for merchants in more than 150 countries.

One catch for holders: SoFiUSD is a payment stablecoin, not a bank deposit. It isn't FDIC- or SIPC-insured, bank-guaranteed or legal tender.