HSBC and SoFi put bank-issued tokens in retail apps in the same week
Banks with millions of app users issue their own tokens and take float that stablecoin issuers pay distributors for.
Competitive · HSBC RedCoin to 3M users
Written for: Investor or analyst
Next step
Thesis: retail token float goes to banks that own the app, not to standalone stablecoin issuers. Confirming signal: HSBC or SoFi disclose token balances in quarterly results, or a top-five US bank launches a retail token. Already building: HSBC (RedCoin), SoFi (SOFIE and SoFiUSD).
Why now
The SoFi watch item said banks would answer stablecoins with tokens of their own. HSBC turns that into a pattern at global-bank scale with a distribution number attached. Two different structures are now live: a bank stablecoin, and an interest-bearing insured deposit token. The distribution deals that stablecoin issuers like Circle rely on face a competitor that already owns the customer and can pay yield.
What became possible
HSBC launched RedCoin, its first stablecoin, to more than 3 million everyday app users. SoFi launched SOFIE, which it calls the first national-bank-issued tokenized deposit for consumers. It pays 4.4% APY, carries FDIC insurance, and converts into SoFiUSD.
Two ways in
- Deposit-token issuance for community banks
White-label issuance, wallet and conversion rails so a $5-50B bank can offer an insured deposit token without building chain infrastructure.
- Customer
- Regional and community banks losing deposits to fintech apps
- Model
- Setup fee plus basis points on token balances
- Bank-token settlement router
Routes and nets payments between different bank tokens and USDC so merchants and payout firms can accept all of them.
- Customer
- Payment processors and payout platforms
- Model
- Per-transaction fee
Competition
White-label deposit-token issuance for $5-50B banks is effectively taken. Stablecore has five state bankers association endorsements and integrations with Jack Henry, Q2, Alkami and Candescent.
Full competition notes (9 competitors)
White-label deposit-token issuance for $5-50B banks is effectively taken. Stablecore has five state bankers association endorsements and integrations with Jack Henry, Q2, Alkami and Candescent. Custodia/Vantage, Cari, Anchorage, Kaleido and Taurus cover the rest, so a new entrant would mostly be fighting for distribution. The router is the more open idea. Multi-stablecoin netting already exists at Bridge, BVNK, Conduit and Eco, but none of them clearly accept many different banks' deposit tokens alongside USDC and net them for merchants and payout firms. Deposit-token work is still siloed in consortium networks like Cari and Custodia or in pilots like Partior/OpenAssets, and the BIS has said these platforms don't work with each other. The opening is to be the neutral clearing layer that joins each bank's network, holds a settlement buffer in USDC or reserves, and gives processors one API. The hard part is that deposit tokens need agreements with each issuing bank and a settlement asset to clear through, which is slow to build but defensible once built. The main risks are Bridge or BVNK adding deposit tokens, and bank groups (Cari, Partior, The Clearing House) building the connections themselves. Note on the premise: SoFi's SOFIE is a true tokenized deposit, while HSBC's RedCoin is a licensed HKD stablecoin, not a deposit token. More token types make a router more useful but also make it harder to build.
- Stablecore
Raised $20M with Coinbase Ventures participating. Offers tokenized deposits, stablecoin rails and on/off-ramps to community and regional banks and credit unions. Endorsed by five state bankers associations (including Utah, North Carolina, Maine and Nebraska) and integrated with Jack Henry, Q2, Alkami and Candescent. The most direct competitor for the issuance idea, and it already has the distribution.
- Custodia / Vantage Bank consortium (Infinant Interlace)
Launched October 2025 to give community and regional banks tokenized deposits. One smart contract acts as an insured deposit inside the consortium and as a GENIUS Act-compliant stablecoin outside it.
- Cari Network
Shared tokenized-deposit network on ZKsync, governed by Huntington, First Horizon, M&T, KeyCorp and Old National (over $600B in deposits combined). Covers both issuance and transfers between member banks, but only within the network.
- Anchorage Digital tokenized deposits
Sells infrastructure for US banks and credit unions to issue and manage deposit tokens with 24/7 settlement connected to their core systems.
- Kaleido
Enterprise tokenized-deposit platform covering minting, burning, freezing and supply rules for financial institutions.
- Taurus
Infrastructure vendor that sells tokenized-deposit issuance and custody to banks.
- Partior / OpenAssets
August 2026 pilot showing simultaneous settlement, 24/7 settlement and batch netting between stablecoins and bank tokenized deposits. Closest to the router idea, but a pilot rather than a merchant-facing product.
- Bridge (Stripe)
Reported to net across several stablecoin issuers so merchants can accept any of them. Natural candidate to add bank deposit tokens. BVNK, Conduit and Eco offer similar multi-stablecoin routing.
- Citi + Coinbase Payments
September 2026 partnership letting Spring by Citi merchants accept stablecoins with automatic conversion to fiat. Citi settles as bank of record.
Checked 2026-10-24
Risks
- Retail balances may stay small and both launches could be marketing more than volume
- Regulators may restrict yield-bearing tokens or narrow conversion to stablecoins
- Stablecoin issuers may keep the advantage on cross-chain liquidity and DeFi reach
Strong tech readiness and team fit; open space and buildability are the weak point (5).
tech 8 · pull 7 · space 5 · fit 8 · build 5
Exposed
Companies that could benefit or be threatened. News and context, not investment advice.
Momentum of its main topic
Sources
Status history
- 2026-10-24 Flagged as buildable