SoFi Technologies Partners With Payward!
SoFi Technologies Inc. (SOFI) announced on Thursday that it will enter into a partnership with Payward, a unified financial infrastructure platform, in a move aimed at strengthening SoFi’s banking, payments, liquidity, and digital asset operations. The collaboration is designed to connect SoFi’s growing digital asset infrastructure with Payward’s broader trading and settlement ecosystem, while also expanding the reach of SoFi’s stablecoin, SoFiUSD.
Under the terms of the partnership, Payward will leverage SoFi’s Big Business Banking capabilities, join the SoFi Exchange Network (SEN), and list SoFiUSD on its multi-asset trading platform. At the same time, SoFi will use Kraken Prime, Payward’s full-service prime brokerage solution, as an additional source of digital asset liquidity. The arrangement is therefore a two-way relationship: Payward gains access to SoFi’s banking and settlement infrastructure, while SoFi gains access to Kraken Prime’s liquidity and Kraken’s broader trading platform.
A key element of the deal is Payward’s access to SEN, SoFi’s real-time settlement network. This gives institutional clients a path to clear and settle U.S. dollar transactions 24 hours a day, seven days a week. Kraken institutional clients will be able to use SEN’s real-time settlement rails to move USD and manage liquidity across both networks at any hour. That kind of around-the-clock settlement capability is especially valuable for institutional crypto participants, who often need to move funds and manage positions outside traditional banking hours.
For SoFi, the partnership offers several potential benefits. Kraken’s decision to list SoFiUSD expands the stablecoin’s reach to millions of users on its multi-asset trading platform. Meanwhile, SoFi’s access to Kraken Prime’s liquidity could potentially improve crypto-trading prices for SoFi members. Because orders placed in the SoFi app will now route through Kraken Prime, customers may enjoy better pricing on crypto transactions. The deal also strengthens SoFi’s Big Business Banking offering, which was launched in April, and could pave the way for deeper collaboration between the two companies in areas such as payments, treasury, lending, and digital assets.
Keefe Bruyette offered its assessment of the announcement, calling it “another positive development” for SoFi. The firm said SoFi stands to benefit from Payward’s operations and its connection to Kraken’s platform. However, Keefe maintained an “Underperform” rating on SoFi Technologies with a $16 price target. That target implies roughly 13% downside from the stock’s last close, indicating that while the analyst views the Kraken partnership as a constructive step, it is not enough to shift a more cautious overall stance on the stock.
In summary, the SoFi-Payward partnership expands SoFiUSD’s distribution, gives Kraken and its institutional clients round-the-clock USD settlement through SEN, and adds Kraken Prime as a new liquidity source for SoFi. It also reinforces SoFi’s business banking push and opens the door to possible deeper collaboration across payments, treasury, lending, and digital assets. The analyst reaction captures the mixed picture: a positive strategic development for SoFi’s digital asset ambitions, but one that still leaves valuation concerns in place.
TITradingView Ideas15 Sept
Bitcoin.com News•Terence Zimwara17h ago
