Circle stock climbs after stablecoin issuer applies for a national bank charter: CNBC Crypto World
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Forbes
22 minutes ago
- Forbes
Headlines That Crypto Investors Might Have Missed
Crypto adoption is accelerating, although investors might have overlooked some important ... More developments With the debate and coverage surrounding the Big Beautiful Bill that has continued its bruising journey through both houses of Congress dominating business headlines and media coverage, crypto investors might feel that issues pertaining to the sector have been relegated to the back burner. This could not be further from the truth, as even in the BBB there had been potential conversation of inclusion of an amendment to address the taxation issues related to crypto miners and stakes. Even though this amendment, proposed by Senator Lummis, was not ultimately included in the bill itself, the fact that this crypto taxation issue has made it to such high levels of debate should be seen as positive for potential future tax alterations. As the crypto landscape continues to evolve and become part of the ongoing policy conversation in the United States, as well as in other nations, it is paradoxically also a time for some investors that might feel like crypto issues are receding from the headlines. Geo-politics and political debates do tend to attract attention and focus at the expense of every other issue, but let's take a look at two major developments that crypto investors might have overlooked during this busy period for busy and political news. Circle and Ripple Becoming Banks In addition to the rapid entrance by TradFi institutions across the globe into the blockchain and cryptoasset space, and these efforts have been substantial in nature, two of the largest crypto native firms in the world are making moves to enter the banking sector. Following a highly successful IPO, which in turn follows years of proving itself to be a stablecoin issuer willing to work with regulators and policymakers, Circle has applied for a national trust charter to operate under the name First National Digital Currency Bank, N.A. If approved by the OCC this bank would both oversee the management of reserve assets back stopping USDC as well as offering digital asset custody services to institutional customers. In addition this charter would help Circle fulfill expected requirements of the GENIUS Act. Ripple, which recently issued the RLUSD stablecoin to expand existing cross-border payment solutions, has also submitted an application for a national banking license to the OCC. Although currently regulated by the NYDFS, the OCC application – if approved – would enhance the reporting, transparency, and compliance requirements for both Ripple and its native stablecoin. Interestingly the application for a national banking license occurred almost simultaneously with the announcement that Ripple was dropping its appeal against the SEC related to the long running legal dispute between the firm and the SEC. With these two leaders of the crypto space actively working to enter the TradFi banking sector, stablecoins (those issued by these two and others) look set for even larger adoption going forward. Visa and Mastercard Embracing Stablecoins In another headline related to the fast growing stablecoin sector of the cryptoasset landscape, payment giants Visa and Mastercard area rapidly pivoting to embrace stablecoin and other tokenized payments. Specifically, the $187 billion in fees paid by merchants annually has presented a lucrative opportunity for firms such as Shopify, Coinbase, and Stripe allowing payments to operate outside of established merchant-processor channels. Both Visa and Mastercard had previously been involved in the crypto and stablecoin payment sector, but have recently doubled down on these efforts. Specifically, Visa is allowing banks to deploy tokens and stablecoin settlement directly onto its existing network, and Mastercard has further expanded its partnership with Paxos, which has been growing since launching in September 2021. Regardless of how these partnerships and agreements evolve over time the implications are clear and have been persistently growing over time. Instead of fighting against the trend toward tokenized payments and on-chain transactions, some of the largest payment processors in the world are actively embracing stablecoins and other tokenized payment solutions. These developments represent one of the most significant developments in terms of crypto adoption, and are happening under the proverbial radar. Even as the doldrums as summer approach, and the legislative process continues to grind forward for policy solutions, the TradFi sector and crypto native sector are converging at an accelerating rate. Policy advocates and investors of all sizes would be well advised to keep a close eye on this progress.
Yahoo
3 hours ago
- Yahoo
SoFi Stock Is Betting on Crypto Again. How Should You Play SOFI Stock Here?
SoFi Technologies (SOFI) is back in the crypto universe with an expansion of its blockchain abilities. The fintech company announced the move as shares have hit a fresh 52-week high of $18.92, powered by its impressive financial performance and business expansion. Investors are now hopeful that its return to cryptocurrency will be a catalyst for further gains. As Amazon Doubles Down on Robotaxis, Is AMZN Stock a Buy? Why Citi Thinks Micron Stock Is Headed to $150 After Earnings Beat OpenAI's Partnership With Microsoft is Good, Says CEO Sam Altman; There's 'Tension,' But Already Planning 'Next Decade Together' Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Fellow fintech companise Robinhood (HOOD) and PayPal (PYPL) have benefitted recently from their own crypto forays, boosting the bull case for SoFi here. SoFi Technologies (SOFI) is a San Francisco-based digital financial services provider that offers a suite of banking, lending, investing, and insurance products. With more than 10.9 million members, the company operates in the U.S., Latin America, Hong Kong, and Canada. SoFi is one of the most prominent fintech companies disrupting consumer finance, and it currently has a market capitalization that exceeds $20 billion. SOFI stock has surged more 200% from the 52-week low at $6.01 to trade in the $18.50 range. With shares up nearly 21% in the year to date, it is vastly outperforming the S&P 500 Index ($SPX), which is up about 6.6% YTD as of this writing. Exponential member growth and service expansion has helped SoFi achieve this run. SoFi trades at a forward price-earnings ratio of about 64.2x and a price-sales ratio of 7.3x. While these multiples are rich relative to traditional banks, they are a function of investor hopes for high growth and high fee-based revenues. SoFi posted record results for Q1 2025 with net revenue at $772 million, a growth of 33% year-over-year, and net income at $71 million. Adjusted EBITDA grew by 46% to a record high of $210 million due to a surge in fee-based revenue, which grew 67% to an all-time high of $315 million. Following these results, management raised full-year 2025 guidance. Plus, the crypto relaunch is expected to boost SoFi's reach and further enable its goal to become a legitimate one-stop-shop for digital banking. In addition to crypto trading against Bitcoin (BTCUSD) and Ethereum (ETHUSD), SoFi will provide stablecoins, lending against crypto collateral, and staking products. SoFi Money members will also be able to access self-serve international transfers through the app in the near future, the company said, an important step toward cross-border growth. SoFi earns a 'Hold' consensus rating rating with the current average price target standing at $14.30, implying downside potential of roughly 22%. The high estimate at $20 implies a somewhat tame potential return of only 8% from here. On the date of publication, Yiannis Zourmpanos had a position in: SOFI. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
21 hours ago
- Yahoo
Why Robinhood Stock Was Scorching Hot Last Month
Some companies wilt in the early summer heat when June rolls along. This one certainly did not. Management was busy adding features to its platform and bolstering its crypto offerings, among other activities. 10 stocks we like better than Robinhood Markets › June is a sluggish month for some, but it sure was active for next-generation brokerage Robinhood Markets (NASDAQ: HOOD). The company launched a set of new features on its platform, closed an acquisition, and published monthly operating metrics that pleased the market. That might be an understatement; the stock rose by over 41% in value across June. Not every development was a boon for Robinhood, however. Speculation was rife that the company's stock would be added to the benchmark S&P 500 index as part of the gauge's quarterly rebalancing. Those hopes were dashed, however, when S&P Dow Jones Indices announced that it would leave the index unchanged. Investors sold out of Robinhood on the news. The S&P 500 disappointment came after a bright spot for the company, namely its monthly operating data release. Robinhood divulged that in May, total assets on its platform were up a beefy 89% year over year to $255 billion. Meanwhile, overall trading volumes also rose briskly, with volumes for stocks more than doubling to over $180 billion, options contracts advancing 36% to nearly the same amount, and a 65% increase in crypto activity (to just under $12 billion). The new features announced by Robinhood in mid-June also piqued the market's attention. While most of these were fairly minor, several have the potential to make the company's trading portal stickier. One is stock "tokens," or equity derivatives that reside on a blockchain, that will allow European users to trade U.S. titles. Another is its artificial intelligence (AI)-enhanced Cortex Digests analytical tool. On the subject of blockchain technology, Robinhood completed a big move in that space. It announced that it had closed its buyout of global cryptocurrency exchange operator Bitstamp. In the press release trumpeting this, the company said that Bitstamp has more than 50 active licenses and registrations around the world, as well as customers located in the U.S., U.K., European Union, and Asia. In the press release, the company said that owning Bitstamp "significantly enhances Robinhood's Crypto product for customers across the globe." So, June was a whirlwind, but in a good way for Robinhood. Some investors might not be too excited about the company doubling down in the volatile world of crypto, but as a trading platform -- essentially an intermediary -- it shouldn't be directly affected by the asset class's famous volatility. Outside of that, those metrics sure looked good, and overall, management seems to be positioning Robinhood in front of some juicy growth opportunities. I'd be bullish on this company's future. Before you buy stock in Robinhood Markets, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Robinhood Markets wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Robinhood Stock Was Scorching Hot Last Month was originally published by The Motley Fool
