SoFi's Stock Surge: Crypto and Student Loans Fuel Growth

SoFi Technologies is making waves in the financial world, with its stock price climbing 36% in 2025. This surge is driven by two major factors: changes in crypto regulations and student loan policies.

Crypto Regulations

The Office of the Comptroller of the Currency (OCC) has issued some favorable rulings. These rulings allow nationally chartered banks to custody crypto assets and execute blockchain payments. This is a big deal for SoFi, as it plans to offer crypto investing by the end of 2025.

SoFi has an edge over other crypto platforms because it offers a wide range of services, from lending and savings to insurance. This makes it a one-stop shop for younger, tech-savvy customers.

Student Loan Policies

The Big Beautiful Bill Act has reduced federal student loan limits. This means graduate students can borrow less from the federal government. As a result, many may turn to private lenders like SoFi.

SoFi's CEO, Anthony Noto, has said that the company will "absolutely capture that opportunity." This is a significant growth area for SoFi, as it was originally a student loan refinancing company.

Recent Performance

SoFi's recent performance has been impressive. In the first quarter of 2025, the company's adjusted net revenue rose 33% to $772 million. This beat the FactSet consensus by $33 million.

SoFi also raised its guidance for 2025, boosting its net revenue outlook by 1% to $3.273 billion and its EPS guidance by 5.7% to $0.275 per share.

Challenges Ahead

However, it's not all sunshine and rainbows. Wall Street analysts believe SoFi's stock is 23% overvalued. They also point to risks such as competition from Block and Revolut in blockchain remittance processing and rising unemployment.

But despite these challenges, SoFi is well-positioned to capitalize on the growing fintech blockchain market, which is forecast to reach $49 billion by 2030.