SoFi's Blockchain Remittance Push Signals New Growth Phase

SoFi Technologies SOFI is entering a strategically important lane with its decision to embed blockchain rails into cross-border payments. This move matters because international remittances remain slow, fee-heavy and controlled by legacy intermediaries. By using blockchain infrastructure, SoFi positions itself to deliver near-instant transfers at a lower cost. This experience can sharply improve sentiment among digitally native users who already rely on the company for banking, lending and investing services.

This single initiative fits neatly into SoFi’s long-term flywheel. Faster, cheaper remittances give members a reason to keep more funds inside the SoFi ecosystem, whether for savings, credit products, or transactions. Higher money velocity within the platform strengthens fee-based revenue streams, reducing dependence on rate-sensitive lending. It also improves SoFi’s ability to acquire and retain customers at a lower cost, something essential as the company scales past its existing user base.

While valuation debates will continue, this blockchain shift demonstrates that SoFi is still willing to challenge traditional financial frameworks. For a challenger bank, technological differentiation is the clearest route to durable competitive advantage. If adoption grows meaningfully, this single product may become one of SoFi’s most powerful engines for ecosystem expansion.

Other Stocks to Watch in Fintech

Block XYZ, Robinhood HOOD and PayPal PYPL are three fintech names to keep on the radar. Block is deepening its ecosystem via Cash App and Square, aiming to unify consumer and merchant services. Robinhood is expanding beyond trading into full-scale financial services, with HOOD users growing steadily. Meanwhile, PayPal is leaning into branded checkout and expanding Venmo’s capabilities. Block, Robinhood and PayPal each face competitive pressure but continue to innovate across digital payment rails and user engagement models.

SOFI’s Price Performance, Valuation and Estimates

The stock has gained 78% over the past year against the industry’s 14.5% decline.

From a valuation standpoint, SOFI trades at a forward price-to-earnings ratio of 49.94X, well above the industry’s 23.56X. It carries a Value Score of F.

The Zacks Consensus Estimate for SOFI’s 2025 earnings has been on the rise over the past 60 days.

SOFI stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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