SoFiUSD Stablecoin Goes Live on Polygon

SoFi still lists Solana for wallet transfers

SoFi added the stablecoin to its app in May, with Ethereum and Solana support and plans to add networks. Thursday’s announcement describes in-app access on Polygon and business settlement through Polygon’s payments platform.

SoFi’s guide to sending SOFID still directs customers to Solana. Its incoming transfer list also specifies Solana for SOFID. The launch announcement gave no date for adding Polygon to either retail transfer route.

Customers who want dollars back in their SoFi accounts can sell SOFID for cash in the app or on the website. The proceeds go into a SoFi checking or savings account. A wallet transfer sends the token over a blockchain and is generally irreversible, SoFi says.

SoFiUSD redemption depends on customer eligibility

SoFi Bank’s token terms reserve direct redemption at one U.S. dollar per token for eligible SoFi customers under separate agreements. Redemptions can be subject to identity checks, minimum amounts and disclosed fees. Receiving a token in an outside wallet does not give the recipient a direct claim to redeem it with the bank.

SoFi Bank’s Sept. 30 reserve report showed 323.5 million tokens in circulation and $330.8 million in cash backing them. The bank excluded roughly 7.1 million tokens it held itself and about 158,000 held as tokenized deposits from the circulation count.

Deloitte issued its opinion on that snapshot on Oct. 30. SoFi Bank reported holding $308.1 million of the reserves at the Federal Reserve, with the rest in a fiduciary account set up by its custodian. The report predates the Polygon launch.

SoFi offers a separate interest-bearing deposit called SoFi Earn, accessed through the same app. SoFi’s guide to both products says holders can use that deposit to buy SOFID. FDIC protection applies to eligible deposits within applicable limits and ends for the amount used to buy the stablecoin.

Polygon opens SoFiUSD settlement to businesses

SoFiUSD joins USDC, USDT and PayPal’s PYUSD on Polygon Open Money Stack, which gives businesses tools to handle wallets, currency conversion and settlement. Polygon Labs added connections to Solana to the same platform in October.

Businesses can use the platform to route payments between networks and to convert tokens into local currency where those services are available, Polygon Labs said. It did not disclose a fee or settlement time for a completed SoFiUSD payment on Polygon.

The rollout follows SoFi’s September announcement that stablecoin settlement went live for its Mastercard card program. SoFi said at the time that it was migrating a card program with more than $25 billion in expected annualized volume to settlement in SoFiUSD.

The Crypto Fear & Greed Index dropped to 13 on Saturday from 20 on Friday, staying in Extreme Fear.

Polygon Labs gave no launch-day volume or user count for SoFiUSD on Polygon. It also described cross-border transfers for members as a planned feature, without a start date or published fees for that service.