SoFiUSD Sparks 22% Stock Jump, Faces Scaling Hurdles

SoFi shares jumped 22% to $18.50 on Friday after the company launched SoFiUSD and the stock formed a technical double-bottom at $15. The price moved above the 50-day exponential moving average. The relative strength index crossed its moving average and the neutral 50 level. Traders are watching $20 as the next resistance and a sustained move above that price would point to a possible target near $23. A drop below $15 would invalidate the double-bottom pattern.

SoFi launched SoFiUSD as a dollar-pegged stablecoin issued by a regulated U.S. bank. The company describes the token as backed by reserve assets. The typical structure for reserve-backed stablecoins places funds in short-term government securities and captures interest income from those reserves. SoFi offers retail banking, loans, investing, crypto trading and credit cards.

SoFiUSD enters a market dominated by a few large tokens. USDT and USDC hold roughly $190 billion and $76 billion in assets, respectively. Newer entrants have smaller pools: PayPal’s PYUSD has about $3 billion and Ripple’s RLUSD about $1.8 billion. To generate revenue from a reserve-based model, SoFi will need to attract customer deposits into SoFiUSD.

Exchange access may affect distribution. Coinbase has an arrangement with Circle that directs a substantial portion of USDC reserves to be invested on Coinbase’s platform, with the exchange retaining the interest. That business line produced more than $1 billion in revenue for Coinbase last year. The arrangement could affect the likelihood that Coinbase lists alternative dollar tokens.

Recent SoFi metrics provide context for the company’s growth plans. Membership rose at a compound annual growth rate of 38% to more than 14.7 million customers. The company projects revenue of about $4.65 billion this year and roughly $7.8 billion in 2028. Analysts’ data show SoFi’s forward price-to-earnings ratio near 29, above the financials sector median of about 10 and higher than some large growth names that trade around the low 20s.

Adoption of SoFiUSD will depend on the company’s ability to attract deposits into the token and to secure listings and distribution through major platforms. The stablecoin launch coincided with the technical rebound in SoFi’s stock, and both developments are operating in a market concentrated among a small number of large tokens and shaped by exchange-level arrangements.