SoFi Technologies (NASDAQ:SOFI) is backing out of the crypto field. Earlier this year, the fintech innovator gave investors an exciting update that it had received the necessary charter to become a national bank. That’s likely part of why the company has decided to cease its dealings in the crypto space and turn its crypto customers over to Blockchain.com.
This news has been good so far for SOFI stock, which closed the day in the green despite some earlier volatility. Clearly, the market is happy with the decision to focus on banking and traditional personal finance — especially as the prospect of further crypto regulations looms large.
Does this mean that SoFI’s turbulent year is over and that the company will continue its upward momentum in 2024? Let’s take a closer look.
What’s Happening With SOFI Stock?
Of course, investors should note that today didn’t start off well for SOFI stock. While shares initially rose after markets opened, they quickly began falling and only recently pulled back into the green. The stock ended the day up 0.14%. However, SOFI has also been gradually trending upward all week.
That said, the decision to back out of the crypto space will certainly impact SoFi’s operations. SoFi users who want to close their crypto accounts have until Dec. 19 to do so. Additionally, users who want to make the jump to Blockchain.com will have the opportunity to opt into the new platform, although that doesn’t apply to customers in all U.S. states. As Investopedia reports:
“Users who want to migrate to Blockchain.com will have to actively opt-in for their account to be transferred […] The migration will expand the services available to these crypto accounts, including access to more tokens, advanced trading features, and security measures including the ability to self-custody crypto.”
While Blockchain.com will see an influx of users, SoFi will undoubtedly lose some, especially as certain users may decide to seek an entirely new platform. As a result, some investors may be worried. But the fact that SOFI stock did not ultimately fall on this news should be reassuring.
Crypto isn’t what makes SoFi a winner. If it was, the company wouldn’t be abandoning the asset class. As InvestorPlace contributor Yiannis Zourmpanos reports, the company’s “robust lending business” is the growth driver that investors should really be focused on.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.