SoFi Technologies is returning to crypto investing after a two-year hiatus — and the digital financial institution can be launching cross-border remittance funds in its app because it expands its “one-stop store” technique for digital monetary companies.
The digital financial institution introduced on Wednesday that its clients will be capable of purchase, promote and maintain standard cryptocurrencies like bitcoin and ethereum by SoFi’s web site and cell app. SoFi additionally anticipates increasing into stablecoins and different sorts of digital property.
SoFi, which initially began as an internet scholar mortgage refinancer and has since expanded into a variety of digital banking merchandise and companies, shall be formally releasing each its crypto and remittance companies later this 12 months for its clients. An precise timeline or launch date was not introduced by the corporate.
“The future of economic companies is being utterly reinvented by improvements in crypto, digital property and blockchain extra broadly,” stated SoFi CEO Anthony Noto in an announcement. “We’re accelerating our efforts to provide members extra selection and extra management, whether or not they’re investing, sending cash throughout borders, or planning for his or her future. Crypto and blockchain improvements can and shall be threaded by every of our companies and capabilities, together with shopping for, paying, saving, investing, borrowing and defending.”
Remittance funds — transactions despatched to a international nation when the sender is positioned within the U.S. — are a piece of the worldwide cash motion economic system that the United States contributes considerably to. The U.S. despatched greater than $188 billion in remittances overseas in 2021, in accordance with the World Bank. All advised, $478 billion in remittances had been despatched worldwide that 12 months.
Remittance funds processing within the U.S. might be topic to the three.5% remittance tax in President Donald Trump’s One Big Beautiful Bill if that portion of the invoice passes in its present kind. SoFi declined a request for remark, however the firm’s announcement did state that clients would have “full transparency on change charges and charges upfront” for remittance funds throughout the SoFi app.
Not SoFi’s first crypto rodeo
This is not the primary time SoFi has ventured into cryptocurrency companies, because it beforehand hosted crypto buying and selling on its platform earlier than turning into a financial institution.
SoFi entered cryptocurrency buying and selling in September 2019 as a part of its SoFi Invest platform, which offered robo recommendation and buying and selling in shares and exchange-traded funds.
SoFi was then granted a “bitlicense” by the New York State Department of Financial Services in late 2019, which allowed clients in that state to commerce cryptocurrencies by the corporate’s digital property platform.
SoFi buys a financial institution, however crypto is rocky
SoFi, which began as a lending fintech known as Social Finance in 2011, set its sights increased early on and initially utilized for a financial institution constitution again in 2017. Instead of gaining its personal constitution, nevertheless, SoFi adopted the trail of a number of different fintechs on the time and purchased a neighborhood financial institution in late 2021.
Regulators authorized the $22.3 million deal to purchase Golden Pacific Bank and flip it into SoFi Bank in January 2022 below one primary situation: SoFi Bank “shall not interact in any crypto-asset actions” until it cleared these efforts with the Office of the Comptroller of the Currency.
“This ranges the enjoying subject and will make sure that SoFi’s deposit and lending actions are performed safely and soundly, together with limiting the financial institution’s skill to have interaction in crypto-asset actions,” then-acting Comptroller Michael Hsu stated in a press launch on the time.
Later that 12 months, the collapse of FTX set regulators on edge. Members of the Senate Banking Committee expressed issues in a sequence of letters to SoFi and banking regulators about whether or not SoFi’s crypto actions had been acceptable for the financial institution in November 2022. According to the senators, the digital financial institution had two years as of January 2022 to divest from SoFi Digital Assets or see that the subsidiary’s impermissible digital-asset actions are in compliance with the legislation.
SoFi discontinues crypto
In November 2023, SoFi introduced that it could be discontinuing crypto companies by the tip of the 12 months and no new crypto accounts could be arrange.
Existing clients had the choice to both liquidate their crypto holdings or migrate them to Blockchain.com, with transaction charges waived for each choices. Any crypto holdings left unsold on SoFi could be robotically liquidated to shut the accounts, with the funds deposited again into buyer brokerage accounts.
“At SoFi, our mission has at all times been clear: that can assist you get your cash proper,” the corporate stated in an announcement on the time. “However, generally this implies making modifications to our enterprise … we’re right here to make the migration as seamless as doable whereas persevering with to supply members entry to all funding alternatives.”
Regulation turns into extra crypto-friendly
After the November 2024 election, issues began trying up within the fintech world — particularly for crypto investments.
Noto stated in a January 2025 earnings name that “because the regulation modifications, we shall be extremely aggressively tied to crypto and be in as many companies as we might be throughout all the platform. Previously we had been simply doing buying and selling — you’ll be able to see us going nicely past that, relying on the regulation. … We hope the administration and the regulators give you readability on what the outlook shall be, however we’ll transfer as aggressively as anybody else as soon as that’s decided.”
Letters 1183 and 1184 issued by the OCC in March and May 2025 now allow nationally chartered banks to supply crypto custody and execution companies on behalf of their clients.
The GENIUS Act, a invoice relating to stablecoin regulation, additionally handed within the Senate final week. Next, it would go to the House and if it passes there, onto President Trump for his signature.
