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 also launched its own stablecoin, SoFiUSD, aimed at supporting faster and cheaper 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 returned 20.8% over the past year, while also seeing a 25.2% decline over the past month and a 28.8% decline year-to-date. In this context, the move towards blockchain-based payments and a proprietary stablecoin is a clear attempt to expand SoFi’s reach beyond its core lending and digital banking products.

For you as an investor, the key question is how these new services could help SoFi attract more users, particularly in the area of ​​remittances and crypto-adjacent activities. The company also signals that it wants to play a larger role in decentralized finance, which could influence how its business mix and risk profile evolves over time.

Stay up to date on the most important SoFi technology news by adding it to your watchlist or portfolio. You can also explore our community to discover new perspectives on SoFi technologies.

2 things going well for SoFi Technologies that this headline doesn’t cover.

Quick assessment

• ✅ Price versus analyst target: At US$19.54, SoFi is trading about 26% below analysts’ price target of US$26.50.
• ❌ Simply Wall St valuation: Shares are trading about 50.5% above Simply Wall St’s estimated fair value.
• ❌ Recent momentum: The stock has a 30-day yield down 25.2%, which represents weak momentum as this news breaks.

There is only one way to know the right time to buy, sell or hold SoFi technologies. Check out Simply Wall St’s corporate report for the latest fair value analysis of SoFi Technologies.

Key Considerations

• 📊 The move to blockchain payments and SoFiUSD could expand 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 the contribution of these products to SoFi’s US$3.58 billion revenue base.
• ⚠️ With stocks reported 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, see SoFi Technologies’ full analysis. You can also check out SoFi Technologies’ community page to see how other investors think this latest news will impact the company’s narrative.

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

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