BitGo selected to support SoFi's new dollar-pegged stablecoin

BitGo Bank & Trust has been selected to provide stablecoin infrastructure services and support distribution for SoFiUSD, a U.S. dollar-pegged stablecoin issued by SoFi Bank. The announcement was made by BitGo Holdings (NYSE: BTGO).

SoFiUSD represents what the companies describe as the first stablecoin issued by a U.S. nationally chartered and insured deposit bank on a public, permissionless blockchain. BitGo will provide technology and operational infrastructure supporting SoFi Bank's issuance through its Stablecoin-as-a-Service platform.

The collaboration will involve BitGo working with select payments providers, market participants, and exchanges to expand institutional access and integration of SoFiUSD across the digital asset ecosystem.

"Our Stablecoin-as-a-Service offering was designed for forward-thinking institutions that require cutting-edge technology paired with BitGo's longstanding foundation of trust," said Mike Belshe, CEO and Co-founder of BitGo.

SoFiUSD will be issued at a 1:1 ratio against the U.S. dollar and include third-party auditor attestations for transparency. Both SoFi Bank and BitGo Bank & Trust operate as OCC-regulated institutions.

The stablecoin is designed to facilitate faster settlements and provide around-the-clock liquidity as a bridge between traditional banking and digital assets. BitGo's infrastructure will handle the technical requirements for minting, burning and transactions through what the company describes as battle-tested smart contracts and custody systems.

SoFi Technologies (NASDAQ: SOFI) operates as a digital financial services platform serving 13.7 million members. BitGo has provided digital asset infrastructure services since 2013 and operates BitGo Bank & Trust, which it describes as the first federally chartered digital asset trust bank owned by a publicly traded company.

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