Online banking platform SoFi Technologies is making a major comeback in cryptocurrency after exiting the market due to regulatory challenges, reintroducing crypto trading and onchain remittances.
The American personal finance and fintech firm announced on Wednesday that it was reentering the cryptocurrency market and introducing “blockchain-powered international remittances,” marking a significant pivot after exiting the space in November 2023.
SoFi eyes stablecoin offerings too
SoFi customers will be able to buy, sell, and hold crypto assets in their accounts, and the firm plans to eventually expand into stablecoin offerings and add the ability to borrow against crypto, according to a waitlist notice on its website.
The firm will be providing members “the ability to borrow against their assets, expanding payment options, and introducing new staking features,” it stated.
SoFi CEO Anthony Noto said he was “very excited” about the innovation the firm can drive using blockchain and crypto across its businesses, adding that “SoFi’s planned new international payments (frequently called remittances) will convert fiat to crypto, transmit via blockchain, and convert to local fiat.”
A pivot to crypto
Noto added that it was only “day one” of the type of innovation that can be driven via blockchain, crypto, and AI “to make financial services faster, easier, safer, more accessible, and lower cost for our members.”
The timing of its crypto offerings comes as the fintech blockchain industry is projected to grow from $3.4 billion in 2024 to $49 billion by 2030, according to Insider.
The company’s Galileo finance platform will also support third-party crypto infrastructure such as wallets and custody, positioning SoFi to compete in the evolving digital finance landscape, it added.
SoFi pulled out of crypto in 2023
SoFi pulled out of the crypto industry in 2023 as a condition of receiving a bank charter under a stricter regulatory environment.
However, regulations have eased under the Trump administration, with stablecoin legislation currently making its way through Congress and the Federal Reserve removing “reputational risk” when examining banks, which could make it easier for crypto companies to deal with banks.
Company stock (SOFI) has gained around 12% over the past week, according to Google Finance.
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