SoFi Technologies (NASDAQ: SOFI) is making significant moves in the crypto and fintech space with its latest announcement, as shared by CEO Anthony Noto.
The company is reentering the cryptocurrency market and introducing blockchain-powered international remittances, marking a significant pivot after exiting crypto in November 2023.
This move comes on the heels of a regulatory shift in the U.S., with the Office of the Comptroller of the Currency issuing interpretive letters 1183 and 1184 in 2025.
These letters now permit national banks to offer crypto custody and execution services, creating a more favorable landscape for SoFi’s ambitions.
The company’s departure from crypto in 2023 was driven by stringent regulatory hurdles, forcing customers to migrate their accounts to Blockchain.com amid industry turmoil, including the collapse of FTX.
Now, with Federal Reserve Chair Jerome Powell recently testifying to the Senate Banking Committee that banks are “free” to offer crypto services, the timing aligns perfectly for SoFi’s return.
This regulatory green light signals a broader acceptance of digital assets, fueling optimism across the sector.
SoFi’s strategy taps into a fast-evolving market.
The fintech blockchain industry, valued at $3.4 billion in 2024, is projected to soar to $49.2 billion by 2030, boasting a 55.9% compound annual growth rate according to Market Research.
A key component of this growth is the integration of blockchain for remittances, which promises to slash transaction times from days to seconds.
This innovation addresses a pressing global need, enhancing efficiency for cross-border payments and positioning SoFi as a key player in the space.
Behind the scenes, SoFi’s embedded finance platform, Galileo, is set to expand, supporting third-party crypto infrastructure like wallet custody and transaction processing.
This backend enhancement strengthens SoFi’s ecosystem, offering seamless integration for users.
The move also rides the wave of increasing support for stablecoin adoption, with recent U.S. policy shifts boosting industry confidence.
These developments could supercharge SoFi’s new offerings, making them more attractive to a growing user base.
Financially, SoFi is positioned to support this expansion.
The company reported a first-quarter 2025 net income of $71 million, surpassing revenue expectations and building a solid foundation for its ambitious plans.
The reintroduction of crypto trading will kick off with Bitcoin and Ethereum, with plans to later include staking options and crypto-backed borrowing.
This blend of decentralized finance within a regulated framework could set SoFi apart in the competitive fintech landscape.
Security is another driving factor.
With global online banking fraud losses reaching billions between 2020 and 2024, blockchain’s immutable ledgers offer a promising solution.
SoFi’s adoption of this technology aims to improve transparency, security, and accessibility, aligning with the transformative impact blockchain is having on banking worldwide.
Additionally, it addresses financial inclusion, potentially bringing unbanked populations in developing economies access to advanced financial tools.
Analysts are fairly optimistic for now about SoFi’s stock potential.
With a current average price target of $14.73 and a high of $20.00, optimism surrounds these innovations, though valuation concerns linger.
However, challenges remain, particularly the environmental impact of blockchain’s computational demands.
As SoFi scales its crypto services, it will need to navigate this sustainability issue carefully.
Noto’s vision, first hinted at in 2023 when he discussed integrating blockchain across lending, paying, and investing, is now taking shape.
This announcement is reportedly just the beginning, promising a future where SoFi leverages AI, crypto, and blockchain to redefine financial services.