SoFi Technologies Reenters Cryptocurrency Market with New Offerings
Online banking platform SoFi Technologies is making a significant return to the cryptocurrency sector after previously withdrawing due to regulatory challenges. The firm is now reintroducing crypto trading and on-chain remittances.
The American personal finance and fintech company announced on Wednesday its reentry into the cryptocurrency market, unveiling plans for “blockchain-powered international remittances.” This marks a major shift after the firm exited the space in November 2023.
SoFi Eyes Stablecoin Offerings
SoFi customers will soon be able to buy, sell, and hold crypto assets within their accounts. The company plans to eventually expand into stablecoin offerings and enable customers to borrow against their crypto holdings, as indicated in a waitlist notice on its website.
The firm will provide members with “the ability to borrow against their assets, expand payment options, and introduce new staking features,” according to their statement.
SoFi CEO Anthony Noto expressed excitement about leveraging blockchain and crypto to drive innovation across the company’s services. He noted 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 this was merely “day one” of the potential innovations that blockchain, crypto, and AI can bring to make financial services faster, easier, safer, more accessible, and cost-effective for their members.
The introduction of these crypto offerings coincides with projections that the fintech blockchain industry will 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.
SoFi’s 2023 Exit from Crypto
SoFi withdrew from the crypto industry in 2023 as a condition of receiving a bank charter amidst a stricter regulatory environment. However, regulations have eased under the Trump administration, with stablecoin legislation currently progressing through Congress. Additionally, the Federal Reserve has removed “reputational risk” considerations when examining banks, potentially making it easier for crypto companies to interact with the banking system.
SoFi’s stock (SOFI) has gained approximately 12% over the past week, according to Google Finance.
Image Credit: cointelegraph.com
