SoFi achieves unprecedented Q4 earnings following cryptocurrency market comeback
The digital financial services company achieved unprecedented quarterly earnings of $1 billion while resuming cryptocurrency trading services, introducing its own stablecoin and implementing blockchain-powered international money transfers.
SoFi Technologies disclosed unprecedented fourth-quarter earnings totaling $1 billion as the American digital banking platform resumed offering cryptocurrency-focused products to consumers.
Based on the company's financial results disclosed on Friday, adjusted net revenue climbed 37% compared to the previous year, reaching $1 billion, while GAAP net income hit $173.5 million during the final quarter. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 60% to reach $317.6 million.
The company disclosed total fee-based revenue reaching an unprecedented $443 million during the quarter, with total membership expanding approximately 35% to reach 13.7 million. The platform onboarded 1.6 million new products throughout the quarter, propelling total financial services products upward by 38% year over year to 17.5 million. The financial institution recorded 63,441 crypto products subsequent to its Dec. 22 launch, although this number represents activity spanning Dec. 22–31 and does not capture a complete quarter's performance.
These financial outcomes follow SoFi's reentry into the digital currency marketplace, after stepping back in November 2023.
During June, the financial services firm resumed cryptocurrency trading capabilities, enabling users to purchase, sell and maintain digital assets. The company additionally launched blockchain-powered international remittance services, which have been extended to more than 30 countries, as stated by the organization.
During December, SoFi unveiled SoFiUSD, a stablecoin backed by US dollars and issued through its banking division, SoFi Bank.
Banks are increasingly pro-crypto
American banking institutions are progressively adopting pro-cryptocurrency positions. During May, multiple major US banks initiated discussions regarding a prospective collaborative stablecoin project. The report indicated that entities connected to JPMorgan Chase, Bank of America, Citigroup and Wells Fargo participated in exploratory conversations about collectively issuing a dollar-backed cryptocurrency stablecoin.
During October, JPMorgan Chase announced intentions to provide cryptocurrency trading capabilities, while excluding direct crypto custody services in the immediate future. During an appearance on CNBC's Squawk Box Europe, Scott Lucas, the bank's global head of markets and digital assets, indicated JPMorgan is evaluating trading services alongside potential third-party custodian partnerships.
On Jan. 23, UBS commenced investigating strategies to provide crypto trading services to its most affluent clientele. The Swiss banking institution would initially permit select private-banking customers in Switzerland to trade Bitcoin (BTC) and Ether (ETH), with a prospective rollout to Asia-Pacific and the US planned for subsequent phases.
In a post on X published Saturday, Coinbase CEO Brian Armstrong stated that discussions with banking executives at the World Economic Forum in Switzerland indicated a transformation in attitude. He noted that the majority of bank CEOs he encountered were "actually very pro crypto and are leaning into it as an opportunity (some aren't quite there yet)."