SoFi Technologies announced plans to offer a U.S. dollar stablecoin, SoFiUSD, prompting a 5% rally to $26.54 on Thursday. The shares are up 72% this year. SoFi described SoFiUSD as issued and backed with 1:1 cash reserves and designed to settle transactions across a blockchain around the clock.
The stablecoin would be used for international remittances and everyday consumer point-of-sale purchases. Analysts view stablecoins as a potentially significant revenue source for financial institutions. The development follows Visa’s December launch of a stablecoin settlement, a move analysts say could be a growth opportunity.
Bank of America analysts noted that stablecoins are expected to be used more for cross-border B2B transactions at Visa. Whether this translates into material revenue remains a topic for investors. The move underscores the broader shift toward digital assets in cross-border payments and settlement.
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