I think I might have an answer for this. Perhaps it is only partial so far, but this is what I did.
It may take figuring out the right color (this is white), blurring the text of course and playing a bit more with blend modes and opacities, but this is what I have so far. It probably isn't too complicated, but the secret is clipping the BG image to the text. Then possibly masking that layer to remove the color from selected words or areas of the photo.
What I have is first the background layer. then the text merged into one layer and the layer at 77%, then the background layer above that, set to hard light, and clipped to the text layer.
Here is what the text looks like by itself:
Sigh, I know this isn't the whole story, but you can simulate it. You can use a mask on the clipped BG to brighten up some of the letters. Then you can make a top layer and softly paint some of the same blue at low opacity over the letters on the blue. I wish I had the straightforward answer. Maybe we'll hit on it. But in the meantime, we can help you reproduce the effect.
As for the font, maybe there is one out there with the blurred edges look to it already. There probably is. This next is with brightening some letters and the top layer of blue shading.
