SoFi Technologies has reported a stellar fourth quarter, achieving record revenues and strong growth across its platform. A significant driver of this success appears to be the fintech bank's strategic re-engagement with the cryptocurrency market, coinciding with a broader industry trend where major financial institutions are increasingly exploring and adopting digital assets.
SoFi's Record Quarter Fueled by Crypto Return
SoFi Technologies closed its fourth quarter with a remarkable $1 billion in record revenue, marking a 37% year-over-year increase in adjusted net revenue. The company also posted a GAAP net profit of $173.5 million and saw adjusted EBITDA jump 60% to $317.6 million. This impressive financial performance was accompanied by substantial growth in its member base, which rose by approximately 35% to 13.7 million, and a 38% increase in total financial service products to 17.5 million. A key catalyst for this growth was SoFi's reintroduction of crypto-based products in December, following a brief withdrawal. The company quickly accumulated 63,441 crypto products in just nine days, alongside re-enabling crypto trading, expanding blockchain-powered remittances to over 30 countries, and launching SoFiUSD, a dollar-backed stablecoin issued by SoFi Bank.
Major Banks Increasingly Embrace Digital Assets
SoFi's proactive stance on cryptocurrencies mirrors a growing trend among traditional banking giants. Major U.S. banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, have reportedly engaged in preliminary discussions about a joint stablecoin initiative. JPMorgan Chase has also outlined plans to offer crypto trading, though it will defer direct custody services. Similarly, Swiss banking titan UBS is exploring plans to offer Bitcoin and Ether trading to its affluent private banking clients, with potential expansion to other regions. This shift in sentiment was underscored by Coinbase CEO Brian Armstrong, who noted a significant change in tone among bank CEOs at the World Economic Forum, with many now viewing crypto as a substantial opportunity rather than a threat.
