The neobank says the launch of SoFi Crypto is thanks to updated regulatory guidance from this spring, and is just the start of its broader crypto strategy.
SoFi Technologies, a publicly traded United States-based neobank best known for student loan refinancing and stock trading, is relaunching crypto trading almost two years after pausing it.
The new SoFi Crypto service will let users buy, hold, and sell “dozens of cryptocurrencies,” beginning with Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), with access rolling out gradually over the coming weeks, the company said in a Nov. 11 press release.
The bank previously offered crypto trading, but paused the service in 2023 due to regulatory uncertainty, redirecting its crypto customers to UK-headquartered exchange Blockchain.
SoFi CEO Anthony Noto also told CNBC yesterday that another reason for the re-launch now was the clear shift from Washington, referencing updated guidance from the U.S. Office of the Comptroller of the Currency (OCC) this spring that made it possible for OCC-regulated banks to offer crypto services, including custody on behalf of customers.
As the San Francisco-based neobank explained in its release, the move is also driven by internal data showing that 60% of SoFi members who own crypto “would prefer to buy, sell and hold their crypto with a licensed bank over their primary crypto exchange.”
As the release claims, the move appears to make SoFi the first U.S. FDIC-insured and nationally chartered bank where regular retail customers have access to traditional banking, borrowing, investing services, alongside buying, selling, and holding cryptocurrencies in one app.
SOFI price year-to-date. Source: Google FinanceAs of press time, SoFi’s shares on the Nasdaq are up 3.8%, and have risen over 100% so far this year, per Google Finance.
SoFi’s Crypto Push
SoFi said its crypto platform boasts “bank-grade safety” and connects with its existing financial services so users can buy crypto directly from their SoFi bank accounts.
SoFi Crypto is part of the company’s bigger push into blockchain, per the release, including plans for crypto remittances, a USD-pegged stablecoin, and tying crypto into its lending and payments services.
As The Defiant reported earlier, Noto revealed on an earnings call this summer that SoFi primarily sees its stablecoin as a way for the bank to transact with other businesses, namely future crypto-native partners.
The Defiant reached out to SoFi for more details on its stablecoin plans, but did not receive a response by press time.
While most major U.S. banks have yet to announce crypto trading for retail customers, several of the largest U.S. crypto firms are pushing to get banking licenses. Coinbase, Paxos, Ripple have all filed for OCC charters, while Anchorage Digital holds a federal banking charter, but targets its crypto banking services to institutions.
Source: https://thedefiant.io/news/tradfi-and-fintech/sofi-relaunches-crypto-services-citing-updated-occ-guidance
