SoFi Blockchain Bet And Stablecoin Launch Tested Against Valuation Concerns

• SoFi Technologies (NasdaqGS:SOFI) has introduced blockchain-enabled cross-border payments using the Bitcoin Lightning Network.
• The company has also launched its own stablecoin, SoFiUSD, aimed at supporting faster and lower-cost international transfers.
• These new products are positioned to target the remittance market and expand SoFi's role in decentralized finance.

SoFi shares last closed at $19.54. The stock has shown a 20.8% return over the past year, while also recording a 25.2% decline over the past month and a 28.8% decline year to date. In this context, the move into blockchain-based payments and a proprietary stablecoin is a clear attempt to widen SoFi's reach beyond its core lending and digital banking products.

For you as an investor, the key question is how these new services might help SoFi attract more users, especially in remittances and crypto-adjacent activity. The company is also signaling that it wants a bigger role in decentralized finance, which could influence how its business mix and risk profile evolve over time.

Stay updated on the most important news stories for SoFi Technologies by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on SoFi Technologies.

2 things going right for SoFi Technologies that this headline doesn't cover.

Quick Assessment

• ✅ Price vs Analyst Target: At US$19.54, SoFi trades about 26% below the US$26.50 analyst price target.
• ❌ Simply Wall St Valuation: Shares are trading about 50.5% above the Simply Wall St estimated fair value.
• ❌ Recent Momentum: The stock has a 30 day return of 25.2% decline, which is weak momentum as this news lands.

There is only one way to know the right time to buy, sell or hold SoFi Technologies. Head to Simply Wall St's company report for the latest analysis of SoFi Technologies's Fair Value.

Key Considerations

• 📊 The move into blockchain payments and SoFiUSD could broaden SoFi's revenue mix beyond lending and digital banking if users adopt these services.
• 📊 Keep an eye on transaction volumes in cross border payments, stablecoin usage, and how much these products contribute relative to SoFi's US$3.58b revenue base.
• ⚠️ With shares flagged as overvalued and a recent 30 day decline, execution risk around new products and past shareholder dilution are important to watch.

Dig Deeper

For the full picture including more risks and rewards, check out the complete SoFi Technologies analysis. Alternatively, you can check out the community page for SoFi Technologies to see how other investors believe this latest news will impact the company's narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com