SoFi’s Strategic Re-entry into Crypto and Blockchain: A New Chapter in Financial Innovation

Elias Zeekeh, MBA, CPA, CMA
Jun 28
6 min read

SoFi Technologies, Inc. (NASDAQ: SOFI), a prominent fintech company, is poised to make a significant return to the cryptocurrency and blockchain sector by the end of 2025. This move follows a forced exit in 2023 due to regulatory requirements tied to its transition to a regulated bank. Enabled by a more accommodating regulatory environment, particularly new guidance from the Office of the Comptroller of the Currency (OCC), SoFi is set to launch blockchain-based international remittances and relaunch crypto trading services. This article analyzes the implications of SoFi’s re-entry for its business, exploring the regulatory changes, potential benefits, risks, and market impact.

Regulatory Changes Enabling SoFi’s Re-entry

In March 2025, the Office of the Comptroller of the Currency (OCC) issued Interpretive Letter 1183, marking a pivotal shift in the regulatory landscape for cryptocurrency activities within the U.S. banking sector. This guidance clarified that national banks and federal savings associations, including SoFi, are permitted to engage in a range of crypto-asset activities without the need for prior supervisory approval. Specifically, the OCC confirmed that banks can offer crypto-asset custody services, participate in stablecoin activities, and operate nodes on distributed ledger networks, provided they adhere to general regulatory and prudential standards.

This regulatory change, described by SoFi CEO Anthony Noto as a “fundamental shift” under the Trump administration, rescinds the restrictive requirements of Interpretive Letter 1179 from November 2021. The earlier directive, issued under former Acting Comptroller Michael Hsu, mandated banks to seek supervisory non-objection before engaging in crypto activities, a process that hindered innovation. By eliminating this barrier, Interpretive Letter 1183 enables SoFi to confidently re-enter the crypto market and expand its offerings, aligning with broader efforts to integrate digital assets into the mainstream economy (SoFi CEO says fintech bank is bringing back crypto investing).

Background and Context

Founded in 2011 as a student loan refinancing platform, SoFi has evolved into a comprehensive fintech provider offering personal loans, mortgages, investing, and banking services. In 2019, SoFi entered the cryptocurrency market, enabling members to trade digital assets like Bitcoin and Ethereum. However, in late 2023, SoFi exited the crypto space as a condition of securing its national bank charter, amid heightened federal scrutiny following the 2022 collapse of FTX and other crypto platforms. Customers were given the option to transfer their crypto holdings to Blockchain.com or liquidate them.

The 2025 regulatory shift, driven by the OCC’s new guidance and a crypto-friendly stance under the Trump administration, has paved the way for SoFi’s return. This re-entry is not merely a reinstatement of previous services but a strategic push to integrate blockchain technology across SoFi’s financial ecosystem, positioning the company as a leader in the fintech-crypto intersection.

New Offerings and Services

SoFi’s re-entry into the crypto and blockchain space is multifaceted, focusing on innovative financial solutions:

Blockchain-Based Remittances: SoFi is launching international money transfers powered by blockchain networks and stablecoins. This service will enable 24/7 transactions, with funds converted to local currencies and deposited quickly, offering a cost-effective alternative to traditional wire transfers (SoFi to Launch Blockchain Remittances).
Crypto Trading Services: SoFi will relaunch trading for major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) by late 2025. Future plans include expanding into staking, borrowing against crypto holdings, and offering blockchain infrastructure through its Galileo platform.
Long-Term Integration: Over the next 6 to 24 months, SoFi aims to integrate blockchain technology into its lending, savings, spending, investing, and insurance products, potentially accelerated through acquisitions.

These offerings position SoFi to capitalize on the growing mainstream adoption of digital assets and blockchain technology, serving its 10.9 million members with innovative financial tools.

Strategic Business Implications

SoFi’s re-entry aligns with its mission to be a one-stop shop for financial services, offering members greater choice and control. CEO Anthony Noto has emphasized that “the future of financial services is being completely reinvented through innovations in crypto, digital assets, and blockchain more broadly.” By embedding blockchain technology across its product lines, SoFi aims to:

Enhance Service Offerings: Blockchain-based remittances and crypto trading could attract a younger, tech-savvy demographic, expanding SoFi’s customer base.
Increase Revenue Streams: New services like staking and crypto-backed loans could generate additional revenue, complementing SoFi’s existing financial products.
Strengthen Competitive Positioning: By integrating blockchain, SoFi differentiates itself from competitors like Robinhood and Coinbase, positioning itself as a leader in the fintech-crypto intersection.

SoFi’s financial health supports this strategic pivot. In Q1 2025, the company reported revenue of $770.7 million, a 32.7% year-over-year increase, surpassing analyst expectations. CFO Chris Lapointe projected over $3 billion in adjusted net revenue for 2025, with annual growth exceeding 25% through 2026. This financial stability provides the resources needed to invest in crypto and blockchain initiatives.

Market Reception and Stock Performance

The market has responded positively to SoFi’s re-entry announcement. The company’s stock surged over 24% in the past month, reaching $16.42 on June 26, 2025, reflecting strong investor confidence. SoFi’s large customer base of over 10 million members provides a significant market for its new crypto services, potentially driving rapid adoption.

However, some skepticism persists. Historical user feedback on platforms like X highlighted concerns about SoFi’s previous crypto offerings, such as the inability to transfer assets to external wallets and tax complexities. SoFi must address these concerns to ensure customer trust and engagement.

Risks and Challenges

While SoFi’s re-entry is promising, several risks and challenges remain:

Market Volatility: The crypto market is inherently volatile, with Bitcoin experiencing a 30% price fluctuation in 2025 alone. This volatility could impact user confidence and financial outcomes.
Regulatory Uncertainties: Although the current regulatory environment is favorable, future changes could pose challenges. SoFi must maintain compliance to avoid repeating its 2023 exit.
Operational Risks: Managing blockchain-based services and crypto trading requires robust cybersecurity in place to prevent hacks and ensure a seamless user experience.
Consumer Protection: Past criticisms, such as those from Senate Democrats in 2022, highlighted potential consumer risks in crypto trading, which could resurface if not addressed.

SoFi’s ability to navigate these challenges will be critical to the success of its crypto initiatives.

Competitive Landscape

SoFi’s re-entry places it in competition with other fintechs and traditional financial institutions entering the crypto space. Companies like Robinhood and Coinbase already offer crypto trading, while banks like JPMorgan are exploring blockchain applications. SoFi’s advantage lies in its integrated financial platform and large customer base, but it must differentiate its offerings to stand out. The partnership with Benzinga to enhance its investing platform suggests a broader strategy to improve user experience and data access.

Financial Projections and Growth Potential

SoFi’s strong Q1 2025 performance and raised full-year guidance indicate a solid foundation for its crypto ventures. The company’s focus on blockchain infrastructure through its Galileo platform could also open new revenue streams by providing services to other businesses. However, the success of these initiatives will depend on SoFi’s ability to manage costs, ensure regulatory compliance, and deliver a user-friendly experience.

Aspect	Details
Revenue (Q1 2025)	$770.7 million, 32.7% YoY increase, surpassing expectations
Customer Base	Over 10 million members
Stock Performance	Up 24% in the past month, $16.42 on June 26, 2025
Projected Revenue (2025)	Over $3 billion in adjusted net revenue
Growth Forecast	Annual revenue growth exceeding 25% through 2026
Key Risks	Crypto market volatility, regulatory changes, cybersecurity challenges

Conclusion

SoFi’s re-entry into the crypto and blockchain space in 2025, enabled by the OCC’s Interpretive Letter 1183, is a strategic move that aligns with its mission to innovate and provide comprehensive financial services. By leveraging blockchain technology for remittances and trading, SoFi aims to enhance its offerings, attract new customers, and strengthen its competitive position. The company’s strong financial performance and large customer base provide a solid foundation for this venture, while the positive market response underscores investor confidence.

However, SoFi must navigate significant risks, including market volatility, regulatory uncertainties, and operational challenges. By addressing these concerns and building on its past experiences, SoFi has the potential to reshape the financial services landscape and establish itself as a leader in the fintech-crypto intersection. As the company rolls out its new services, the industry will be watching closely to see how SoFi’s bold vision transforms the future of finance.