SoFi Plans Return to Crypto With Blockchain Initiative. Bitcoin Trading Is Coming. — Barrons.com
By Mackenzie TatananniSoFi Technologies is making an ambitious return to the world of cryptocurrencies with plans to institute a blockchain money-transfer feature and allow users to hold certain digital currencies as soon as this year.The stock rose Wednesday on the announcement. Shares were up 1.9% to $16.15. The benchmark S&P 500 and Nasdaq Composite were up 0.1% and 0.4%, respectively.Sofi's blockchain-enabled money transfer feature will be available soon through the SoFi app, the fintech said. Funds will be transferred over blockchain networks, converted into local currency from U.S. dollars, and deposited into a recipient's account.The company declined to provide a timeline for the rollout, but said users can join a wait list ahead of the product launch later this year.CEO Anthony Noto said the move was an attempt to reposition the company at the cutting edge of technology."The future of financial services is being completely reinvented through innovations in crypto, digital assets, and blockchain more broadly," Noto said in a statement.The fintech also indicated that customers will be able to buy, sell, and hold certain cryptocurrencies including Bitcoin and Ethereum. SoFi intends to offer stablecoins "over time," in addition to services like staking features and the option to borrow against crypto assets.Noto hinted at SoFi's return to crypto in April, saying the company planned to re-enter the business after a two-year hiatus.SoFi first introduced crypto trading to its platform in late 2019; however, the company suspended its investing services in 2023 as a condition of receiving a national bank charter. The fintech appears to be looking to take advantage of a more lenient regulatory landscape under the Trump administration.A notice from the Office of the Comptroller of the Currency may have been another catalyst, which reaffirmed that crypto-asset custody and "certain stablecoin activities" were allowed within the federal banking system.Write to Mackenzie Tatananni at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.