Finance and Loan Bank SoFi Technologies is launching its own stablecoin that users can buy, sell, and convert to USD. SoFiUSD is the first stablecoin issued by a U.S. national bank to be available directly on a banking app to its consumers. The stablecoin will allow users to move money more quickly but still within a regulated banking ecosystem, SoFi said in a statement.
SoFi introduced SoFiUSD, which is pegged to the greenback, late last year, but it was only available to enterprise partners like card networks and retailers. Now, all SoFi users will have access to the stablecoin directly via their app. SoFi stock rose as much as 3.5% Wednesday morning after the announcement.
“With SoFiUSD, we’re giving our members a single place to buy, hold, and pay with digital assets in the same app they already use to save, spend, borrow, and invest,” said CEO Anthony Noto in a statement. A SoFi spokesperson added, “SoFiUSD is designed for members who already engage with crypto but want a safer way to do it. SoFi is a nationally chartered bank, with robust compliance, comprehensive oversight, and a steadfast commitment to consumer protection — it is the exact environment where stablecoin adoption should happen.”
Also Read: How To Make $1 Million With Google Stock in 10 Years
According to the platform, SoFi plans to allow members to convert SoFiUSD into interest-bearing tokenized deposits in the coming weeks. Additionally, customers will soon be able to make 24/7 international money transfers via blockchain. Further, SoFi plans to launch the new SoFiUSD stablecoin on its centralized exchange partner shortly.
SoFi’s recent challenges include a 39% year-to-date drop and disappointing earnings, while alternatives like Visa and Mastercard present steadier options. However, the first-of-its-kind stablecoin offering could be a move that sets SOFI stock back on the right path. At the time of writing, Wall Street is mostly bullish on the stock offering. Based on 19 Wall Street analysts offering 12-month price targets for SoFi in the last 3 months. The average price target is $20.69 with a high forecast of $30.00 and a low forecast of $16.00. The average price target represents a near 25% climb from its current price.