SoFi Stock Pops on Stablecoin Launch. The Fintech Doubles Down on Crypto.

SoFi stock has climbed 64% this year as of Wednesday’s close. (Dreamstime)

Key Points

• SoFi Technologies launches SoFiUSD, a dollar-pegged stablecoin, for commercial clients to enable near-instant, low-cost fund settlement.
• SoFiUSD also will be used in consumer crypto trading, international remittances, and point-of-sale services, with broader availability expected.
• SoFi shares have risen sharply this year, outperforming the Nasdaq Composite, in part due to investor response to its crypto expansion.

SoFi Technologies is doubling down on cryptocurrency, this time for its commercial clients.

The company announced Thursday that it was launching a dollar-pegged stablecoin called SoFiUSD. Partners including card networks, retailers, and banks will be able to use SoFi’s stablecoin infrastructure to move funds at any time with near-instant settlement at fractional-cent prices, the company said, and to offer their own “white-label” coins.

SoFi also will use SoFiUSD for settlement in its consumer crypto trading business and as part of its international remittances and consumer point-of-sales services. The coin is now available for internal settlement activity at institutions, with broader availability to SoFi members expected in the coming months.

Stablecoins are a type of token pegged to stable assets like the U.S. dollar and backed by liquid reserves. They are transferred over decentralized blockchain ledgers, like other cryptocurrencies.

“Blockchain is a technology super cycle that will fundamentally change finance,” said SoFi CEO Anthony Noto in a statement. The company, Noto added, is “combining our regulatory strength as a national bank with transparent, fully reserved on-chain technology to provide a safer and more efficient way for partners to move funds.”

The company said it was in advanced discussions with a number of institutions to start using SoFiUSD, which is live Thursday with an initial mint of $10,000.

SoFi stock was up 4.9% on Thursday, while the Nasdaq Composite Index jumped 1.9%.

The announcement Thursday is part of a broader effort by financial services companies to add stablecoin and other crypto offerings to their repertoires. That push has accelerated this year, particularly since President Donald Trump signed the Genius Act into law in July, establishing a regulatory framework for stablecoins.

On Tuesday, Visa announced it would allow banks to settle transactions with the USDC stablecoin in the U.S. Earlier in the year, financial-technology company Fiserv launched a stablecoin called FIUSD for its banking and business clients, knowing that the Genius Act was likely on the way.

SoFi itself reintroduced a consumer crypto trading platform, SoFi Crypto, in November, having suspended the offering in 2023 as a condition of receiving a national bank charter. SoFiUSD expands the company’s crypto business from individual users to commercial partners—a notable move given the company’s origins as a consumer lender.

SoFiUSD is issued by SoFi Bank, N.A., a national depository institution regulated by the Office of the Comptroller of the Currency. The stablecoins will be backed by cash reserves for immediate redemption, SoFi said.

Investors have responded well to SoFi’s push into crypto and its effort to become a “one-stop-shop” financial services provider. SoFi stock has gained 64% this year as of Wednesday’s close, while the Nasdaq Composite Index has risen 18%.

Write to Nate Wolf at nate.wolf@barrons.com