SoFi Technologies Resumes Crypto Investment After Two-Year Pause
SoFi Technologies is re-entering the cryptocurrency market following a two-year break, coinciding with the launch of cross-border remittance payments within its app. This move aims to enhance its strategy of becoming a comprehensive provider of digital financial services. The digital banking platform revealed on Wednesday that users will soon have the capability to buy, sell, and store widely-used cryptocurrencies such as Bitcoin and Ethereum through SoFi’s website and mobile application. The firm also plans to broaden its offerings to include stablecoins and various other digital assets. Originally established as an online platform for refinancing student loans, SoFi has evolved into a full-fledged digital banking institution, with both its crypto and remittance services set to be unveiled later this year, although specific dates have yet to be disclosed.
SoFi’s Vision for the Future of Finance
SoFi CEO Anthony Noto emphasized the transformative potential of cryptocurrency, digital assets, and blockchain technology in reshaping financial services. He stated, “We are accelerating our efforts to give members more choice and more control, whether they’re investing, sending money across borders, or planning for their future.” Noto highlighted that innovations in crypto and blockchain will be integrated across all facets of SoFi’s operations, which encompass buying, spending, saving, investing, borrowing, and safeguarding assets.
The Significance of Remittance Payments
Remittance payments, which refer to money sent to foreign countries from the U.S., play a significant role in the global financial ecosystem. In 2021, the United States contributed over $188 billion in remittances, as reported by the World Bank, out of a total of $478 billion sent globally. There’s potential for these transactions to incur a 3.5% remittance tax under President Donald Trump’s proposed legislation if it passes in its current form. While SoFi did not provide additional comments, the company’s announcement assured customers of “full transparency on exchange rates and fees upfront” when utilizing the remittance features within their app.
SoFi’s Previous Experience with Crypto Services
This isn’t SoFi’s inaugural foray into the world of cryptocurrency. The company previously offered crypto trading services on its platform prior to its transition to a bank. SoFi began its crypto journey in September 2019 with its SoFi Invest platform, which included automated advice and trading for stocks and exchange-traded funds. Later that year, the New York State Department of Financial Services granted SoFi a “bitlicense,” allowing users in New York to engage in cryptocurrency trading via their digital assets platform.
Acquisition of a Bank and Regulatory Challenges
Founded in 2011 as a lending fintech known as Social Finance, SoFi aimed for greater ambitions by applying for a banking charter in 2017. Instead of securing its own charter, the company opted to acquire a community bank in late 2021. The $22.3 million acquisition of Golden Pacific Bank was approved by regulators in January 2022, with a stipulation that SoFi Bank “shall not engage in any crypto-asset activities” without explicit approval from the Office of the Comptroller of the Currency. This regulation was intended to ensure the safety and soundness of the bank’s deposit and lending functions while restricting its involvement in crypto.
SoFi Halts Crypto Services
In November 2023, SoFi announced its decision to discontinue cryptocurrency services by year-end, ceasing the creation of new crypto accounts. Existing users were given the choice to liquidate their cryptocurrency holdings or transfer them to Blockchain.com, with fees waived for both processes. Any remaining crypto assets on SoFi’s platform would be automatically liquidated, with proceeds returned to customers’ brokerage accounts. The company stated, “At SoFi, our mission has always been clear: to help you get your money right. However, sometimes this means making changes to our business … we’re here to make the migration as seamless as possible while continuing to offer members access to all investment opportunities.”
Optimism for a Crypto-Friendly Regulatory Environment
Following the November 2024 elections, there has been renewed optimism in the fintech sector, particularly regarding cryptocurrency investments. In a January 2025 earnings call, CEO Noto expressed that as regulations evolve, SoFi would aggressively expand its involvement in cryptocurrency and related services. He noted that the company’s previous focus on trading would extend into new areas, contingent on future regulatory clarity. Recent letters issued by the OCC in March and May 2025 now allow nationally chartered banks to offer crypto custody and execution services for their clients. Additionally, the Senate recently passed the GENIUS Act, a bill aimed at regulating stablecoins, which will soon move to the House before potentially reaching the President for approval.
