Crypto Journalist
Amin Ayan
Crypto Journalist
Amin Ayan
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SoFi Technologies is making a return to the cryptocurrency space, less than a year after stepping away due to regulatory hurdles.
Key Takeaways:
- SoFi has reentered the crypto market with trading, remittances, and future DeFi tools.
- The platform plans to offer stablecoins, staking, and asset-backed borrowing to users.
- Regulatory shifts in the U.S. have opened the path for SoFi’s renewed crypto strategy.
The US-based online banking platform announced Wednesday that it is reintroducing crypto trading and launching blockchain-based international remittances as part of a broader expansion into digital assets.
SoFi users will soon be able to buy, sell, and hold cryptocurrencies through their accounts, with future plans to offer stablecoin products, crypto-backed loans, and staking features.
SoFi Plans Asset-Backed Borrowing and Expanded Payment Options
The company said it aims to create a more comprehensive digital finance experience by expanding payment options and introducing asset-backed borrowing.
CEO Anthony Noto said SoFi is “very excited” to leverage blockchain technology across its operations.
The planned remittance service will convert fiat to crypto, transmit funds over blockchain rails, and reconvert them into local fiat on the receiving end.
“This is just day one,” Noto said, hinting at long-term plans involving crypto, blockchain, and artificial intelligence to improve financial accessibility and cost-efficiency.
SoFi’s crypto reboot coincides with projections of rapid industry growth, with the fintech blockchain market expected to reach $49 billion by 2030, up from $3.4 billion in 2024, according to Insider.
The firm’s Galileo platform will support third-party crypto infrastructure, including wallets and custody services, positioning SoFi as a serious contender in the expanding digital finance ecosystem.
SoFi exited the crypto space in late 2023 after securing its bank charter, agreeing to the withdrawal under tighter regulatory conditions.
However, recent shifts in Washington, such as advancing stablecoin legislation and the Federal Reserve’s rollback of “reputational risk” assessments, have opened the door for traditional banks to work more closely with crypto firms.
Shares of SoFi Technologies (SOFI) have climbed roughly 12% over the past week, reflecting renewed investor interest in its pivot back to crypto-enabled services.
Venture Capital Backing For Crypto Payment Services on the Rise
Earlier this year, crypto payment firm RedotPay closed a $40 million Series A funding round, led by Lightspeed with key investments from HSG, Galaxy Ventures, and other prominent investors including DST Global Partners, Accel, and Vertex Ventures.
RedotPay’s funding round came shortly after crypto payments firm Mesh raised $82 million in a Series B funding round to expand its blockchain-based settlement network globally.
The round was led by Paradigm, with participation from ConsenSys, QuantumLight, Yolo Investments, Evolution VC, Hike Ventures, Opportuna, and AltaIR Capital.
Notably, most of the investment was settled using PayPal’s PYUSD stablecoin, highlighting the growing role of stablecoins in financial transactions.
Venture capital firms are increasingly backing projects focused on stablecoin services and financial infrastructure.
The sector’s potential was further underscored by payments giant Stripe’s acquisition of stablecoin platform Bridge for $1.1 billion last year, signaling strong institutional interest in blockchain-based financial solutions.
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