SoFi Launches Bank-Issued Stablecoin, Shares Surge 13% on Retail Rally
SOFI•Shares of SoFi Technologies jumped 13% in premarket trading on May 29 after the company launched SoFiUSD, a bank-grade, 1:1 U.S. dollar-redeemable stablecoin integrated for its nearly 15 million members. Analysts note that a surge in retail trading and potential short-covering amplified the stock’s gains.
1. Stablecoin Launch Signals Crypto Push
On May 28, SoFi unveiled SoFiUSD, a bank-grade stablecoin pegged 1:1 to the U.S. dollar and issued on a public blockchain, granting its nearly 15 million members the ability to buy, sell and hold digital dollars within its platform.
2. Shares Spike 13% Premarket Trading
Following the stablecoin announcement, SoFi’s stock leaped 13% in premarket trading, marking its largest one-day premarket gain in over a year and surprising analysts who expected more muted reactions to product rollouts.
3. Retail Enthusiasm and Short-Covering Amplify Rally
Analysts attribute the dramatic move to a resurgence in retail trading sentiment and potential short-covering pressure, as evidenced by elevated call option activity sector-wide and higher retail trading volumes.
