Key Stats for SoFi Stock
- Price change for SoFi stock in the last 1 year: -41%
- $SOFI Stock Price as of Sep. 22: $17
- 52-Week High: $33
- $SOFI Stock Price Target: $20
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What Happened?
SoFi Technologies (SOFI) stock rose 3% on Tuesday. The move came after SoFi said it became the first national bank to go live with stablecoin settlement across Mastercard’s global payments network.
In simple terms, SoFi is moving its whole debit and credit card program onto blockchain-based settlement.
The program is expected to handle more than $25 billion in yearly volume using SoFiUSD, the company’s own stablecoin.
- SoFiUSD is the first stablecoin issued by a nationally chartered bank.
- SoFi Bank, N.A., issues it and is regulated by the OCC.
- Each token can be redeemed 1:1 for U.S. dollars and is backed mainly by cash.
The launch builds on a partnership SoFi and Mastercard announced in March.
CEO Anthony Noto hinted at this on the Q2 earnings call, saying card settlement in SoFi USD with Mastercard would begin in the coming weeks.
Merchants also benefit. Through SoFi’s Big Business Banking platform, they can receive funds instantly and withdraw cash anytime at no cost.
They don’t need to hold stablecoins or change how they operate.
SoFi said it is talking with large U.S. merchants, including big multinational retailers and tech platforms.
SoFi and Mastercard will also look at other uses, such as cross-border payments and remittances.
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What the Market Is Telling Us About SoFi Stock
Investors see this as a real step forward. SoFi Technologies stock is gaining because the stablecoin plan now has a large, live use case.
This is not SoFi’s only SoFiUSD project. Its crypto trading business already settles in SoFiUSD.
Big Business Banking clients can also move money in real time, 24/7.
The news adds to strong recent momentum. In Q2, SoFi added a record 1.1 million members, bringing its total to 15.8 million.
Adjusted net revenue grew 40% to $1.2 billion. The company also raised its full-year revenue guidance to $4.75 billion to $4.85 billion.
For investors following SoFi Technologies stock, the next thing to watch is whether large merchants sign on to stablecoin settlement.
That would show if SoFiUSD can grow beyond SoFi’s own products.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
