$SOFI May Have Found Its Next Growth Engine
Tether has shown just how powerful the stablecoin model can become.
$Tether(USDT.USD.CC)$ ended 2025 with more than $10B in profit and over $186B in circulation.
Now $SoFi Technologies Inc.(SOFI)$ is entering the same market with a very different setup.
SoFiUSD is issued by SoFi Bank, a regulated U.S. national bank, and is fully reserved 1:1 for dollars. SoFi has already partnered with Mastercard for settlement and Kraken for distribution and liquidity.
The bull case is simple 👇
If SoFi can capture even a meaningful slice of the stablecoin market, the economics could become enormous given the high-margin nature of reserve-backed stablecoin businesses.
And $SOFI doesn't need to replace Tether overnight. Even a fraction of that scale could eventually create a business comparable with major parts of SoFi's existing earnings base.
Then there is the other bear argument: credit risk.
Every time the macro backdrop weakens, the same question comes back: How will SoFi perform through a tougher credit cycle?
That's a fair question. But investors have had several opportunities to test the thesis over the past few years, including COVID, the Ukraine shock and the Iran conflict.
So far, the expected collapse in credit performance hasn't materialized.
That doesn't eliminate future credit risk. It does mean the market keeps asking the same question while $SOFI continues building the business.
Stablecoins could become the new growth engine. Credit performance remains the key test.
That's a pretty interesting combination for a company the market still often values primarily as a digital lender. 👀
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