SoFi, the first report card after resuming cryptocurrency trading... expanded in size but limited in profitability

American online financial company SoFi announced its first performance report after resuming its cryptocurrency business. Although trading volume is large, costs account for most, and profitability remains limited.

Trading revenue of $170 million, with actual retained profit of only about 1.2B Korean won

SoFi’s first-quarter revenue from cryptocurrency trading was $121.6 million (approximately 178 billion Korean won). However, during the same period, trading costs reached $120.7 million (about 177 billion Korean won), with net profit of only $852k (approximately 1.25 billion Korean won).

This indicates that although the cryptocurrency business has grown in scale, achieving “profitability” is still in the early stages.

The company explained that it recognizes cryptocurrency trading income on a “gross basis.” Its structure involves buying or selling cryptocurrencies from external liquidity providers during the matching of customer orders, then transferring them to customer accounts. This is similar to a “brokerage model” that does not assume directional risk.

The number of accounts exceeds 230k… actual active engagement is another matter

SoFi stated that as of March 31, it held a total of 239,509 cryptocurrency accounts. However, this data is based on the cumulative number of accounts opened and may differ from the number of active accounts actually engaging in trading.

This performance is the first detailed public data since SoFi resumed in-app cryptocurrency trading last November. Previously, the company announced plans to re-enter the market last June, including cryptocurrency investment services and blockchain-based remittance business.

Stablecoin “SoFiUSD” has also been fully launched

SoFi announced that it has started issuing its own stablecoin, “SoFiUSD (SoFiUSD),” from the first quarter. This token is designed for inter-company settlement, and the company is working with Mastercard to connect with payment networks in the future.

However, if the “GENIUS Act” comes into effect, this stablecoin may need to be transferred to a separately licensed entity.

Meanwhile, SoFi clarified that its holdings of cryptocurrencies are “only at levels necessary for operations,” not for long-term investment purposes.

This performance shows that the cryptocurrency business has achieved success in “activating trading,” but it still takes time to realize substantial profits. How stablecoins and payment infrastructure will expand profit models in the future is now a core focus.

Article summary by TokenPost.ai 🔎 Market interpretation SoFi shows rapid outward growth after resuming cryptocurrency trading, but due to high trading costs, actual profitability is extremely limited. Using gross revenue recognition (brokerage structure) makes the revenue appear large, but costs nearly offset most of the income. This indicates that the current cryptocurrency trading business is still in the “user expansion phase.” 💡 Strategic points Given that relying solely on trading brokerage makes profitability difficult, expanding stablecoins and payment infrastructure is expected to become the core growth axis. The partnership between SoFiUSD and Mastercard hints at the potential emergence of new profit models in payments and settlement in the long term. Future regulatory changes (GENIUS Act) are also an important variable. 📘 Terminology explanations Brokerage model: a structure that does not bear asset price fluctuation risk, mainly earning through intermediary fees. Gross revenue recognition: a method of recognizing total transaction amount as revenue (which may differ from actual profit). Stablecoin: a cryptocurrency pegged to the value of fiat currency. Liquidity provider: an institution or market participant that supplies the buy and sell orders needed for trading.

💡 Frequently Asked Questions (FAQ)

Q. Why is revenue large but actual profit almost none? SoFi recognizes cryptocurrency trading on a gross basis. When processing customer orders, buying or selling assets from external sources incurs costs simultaneously, so revenue and costs nearly offset each other, leaving very little profit. Q. With many cryptocurrency accounts, does that mean there are many actual users? The account count mentioned in the article is based on the cumulative number of accounts opened, which may differ from the number of active trading users. Therefore, active user metrics are more important when assessing platform growth. Q. What role will SoFiUSD play in the future? SoFiUSD is a stablecoin intended for inter-company payments and settlements, and may connect with card networks in the future, expanding into practical payment infrastructure. However, regulatory requirements may lead to it being transferred to an independent entity, so structural changes are foreseeable.

TP AI notes: This summary was generated using a language model based on TokenPost.ai. The main content of the article may not be fully included or may differ from actual facts.