SoFi Is Bringing Blockchain to Users Worldwide. 'We're Just Getting Started,' CEO Says. — Barrons.com

By Mackenzie Tatananni

SoFi will start letting users send money internationally over a blockchain network as part of the fintech's ambitious return to the world of cryptocurrency.

The fintech said Tuesday it is joining with Lightspark, a privately held software company, to launch a "blockchain-powered remittances service."

The tool will convert U.S. dollars to Bitcoin in real time and transfer funds across borders, where they will be instantly converted into local currency and delivered to the recipient's bank account, SoFi said.

The initiative is part of an international money transfer service that is slated to roll out to the SoFi app later this year. The offering will first be available in Mexico, and will expand to other countries in phases.

The fintech made its foray into crypto in 2019, but those aspirations hit a wall in 2023, when the company was forced to suspend its trading services as a condition of receiving a national bank charter. SoFi announced its return to blockchain technology in June after a two-year hiatus.

Speaking to Barron's ahead of SoFi's latest earnings report, CEO Anthony Noto expounded on potential uses of the technology.

"Blockchain allows us to move money faster," Noto said. "It also allows us to do things like secured lending, which is a lower cost of borrowing than other forms of unsecured lending, like credit card lending."

SoFi has teased the coming opportunity for users to buy, sell, and hold digital currencies, including Bitcoin and Ethereum, later this year. The fintech also plans to offer stablecoins, in addition to staking features and the option to borrow against crypto assets.

"We feel like we're just getting started, and we're ushering in these two big technology supercycles in both AI and cryptocurrency," Noto said.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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