Publicly traded financial services company SoFi has reentered the cryptocurrency market with the launch of SoFi Crypto, allowing users to buy and sell popular digital currencies such as Bitcoin, Ethereum, and Solana. This development comes after the firm suspended its crypto services in 2023 following a thorough assessment of its offerings.
On Tuesday, CEO Anthony Noto emphasized the significance of the launch, describing it as a pivotal moment that integrates banking and cryptocurrency within a single, trusted platform. He articulated a strong belief in the transformative power of blockchain technology, predicting it will revolutionize the financial landscape by enabling quicker, less expensive, and more secure money movements. Noto added that this technology will also provide innovative opportunities for borrowing, investing, spending, and saving.
The firm had hinted at its intentions to reintroduce crypto trading during a January earnings call and formally announced its plans in June, which included potential features for crypto staking and borrowing. However, the initial rollout of SoFi Crypto focuses on enabling users to trade up to 30 different crypto assets.
One of the standout features of SoFi Crypto is the ability for users to purchase cryptocurrencies directly using funds from their FDIC-insured checking or savings accounts, eliminating the need to manage separate accounts for crypto trading. This feature aligns with findings suggesting that around 60% of SoFi members who own crypto prefer to conduct transactions through a licensed bank rather than a primary crypto exchange. This data underscores the confidence consumers have in regulated institutions like SoFi.
The firm’s recent capabilities come in light of new regulations allowing federally chartered banks to manage and execute crypto-related services for their customers. Following the Office of the Comptroller of the Currency’s issuance of an interpretive letter permitting these activities, various crypto firms, including Coinbase and Circle, have been pursuing national bank charters.
Currently, access to SoFi Crypto is being rolled out in phases, with a waitlist implemented for those interested in utilizing the new service. On the stock market, shares of SoFi (SOFI) experienced a nearly 1% increase on Tuesday, trading at $30.80, marking a year-to-date gain of 100%. A representative for SoFi had not responded to inquiries regarding the launch at the time of reporting.
