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SAN FRANCISCO - Financial technology company SoFi (NASDAQ:SOFI), whose stock has surged over 220% in the past year and is currently trading near its 52-week high of $25.11, announced plans to introduce an international money transfer service later this year that will utilize blockchain technology through the Bitcoin Lightning Network. According to InvestingPro data, the company has shown remarkable growth with revenue increasing by 29% year-over-year.
The new service will be integrated directly into the SoFi app and will enable members to send funds abroad with what the company describes as lower fees and faster delivery compared to traditional remittance providers. With a robust market capitalization of nearly $29 billion, SoFi continues to expand its financial services portfolio.
According to the announcement, SoFi will partner with Lightspark, an enterprise infrastructure provider, to implement the technology via Universal Money Address (UMA). The service will convert U.S. dollars to Bitcoin in real-time, route funds across borders using the Bitcoin Lightning Network, and then convert them back into local currency for delivery to the recipient’s bank account.
The company stated that the service will initially be available for transfers to Mexico, with additional countries to be added after launch. SoFi claims its international transfer service will offer costs below the current national average, with exchange rates and fees displayed before transactions are confirmed.
"By embedding this directly into SoFi’s app, we’re unlocking the value of blockchain technology," said Anthony Noto, SoFi CEO, in the press release statement.
The service will be available 24/7 through SoFi Checking & Savings, which is offered through SoFi Bank, N.A. Member FDIC. The company has created a waitlist for members interested in accessing the service when it launches.
SoFi reports having over 11.7 million members who use its platform for various financial services including borrowing, saving, spending, investing, and financial protection. While the company maintains strong growth metrics, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors can access 13 additional exclusive ProTips and comprehensive financial analysis through the InvestingPro platform’s detailed research reports.
In other recent news, SoFi Technologies reported a strong second-quarter performance that exceeded expectations from both Needham and Wall Street analysts. The financial services company showed significant growth in its lending platform, reaching an annualized origination volume of $9.5 billion. Following these results, Mizuho raised its price target for SoFi to $26, while Needham adjusted its target to $25, both maintaining positive ratings on the stock. Meanwhile, William Blair reiterated its Outperform rating after meetings with SoFi’s leadership, expressing continued confidence in the company’s growth outlook.
In addition, SoFi announced a $1.5 billion public offering of common stock, pricing 71,942,450 shares at $20.85 each. This move is expected to raise substantial gross proceeds, with underwriters having a 30-day option to purchase additional shares. The offering is anticipated to close in July 2025, pending customary conditions. These developments highlight a period of robust growth and strategic financial maneuvers for SoFi Technologies.
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