In a significant development in the traditional banking sector, SoFi Technologies has officially launched crypto trading services for its customers. The move marks a notable milestone for the federally chartered bank as it embraces the growing crypto market and fosters the integration of traditional finance and digital assets. This development coincides with recent regulatory clarifications and highlights the evolving landscape of cryptocurrency regulation and the growing appetite of mainstream financial institutions to participate in the digital asset economy.
- SoFi is the first nationally chartered bank to offer direct-to-consumer crypto trading.
- The bank launched its crypto service with plans to include dozens of digital assets, including Bitcoin and Ethereum, among others.
- In particular, regulatory changes by the OCC facilitated SoFi’s return to cryptocurrencies after a brief exit in 2023.
- SoFi aims to introduce stablecoins and integrate blockchain-based payment and lending solutions.
- The bank’s CEO highlights the transformative potential of blockchain and cryptocurrencies in the financial system.
In a significant step towards mainstream adoption, SoFi Technologies has announced the launch of cryptocurrency trading services for its customers. The bank, which began a phased rollout on Monday, will offer access to a wide range of cryptocurrencies, including industry giants such as Bitcoin (BTC) and Ethereum (ETH), with more digital assets expected to be added in the coming weeks. This move marks a historic milestone as SoFi becomes the first and only nationally chartered bank to launch consumer crypto transactions.
CEO Anthony Noto said the decision was driven by recent regulatory clarity, noting that the Office of the Comptroller of the Currency (OCC) eased restrictions on banks’ exchanges with cryptocurrencies in March. “One of the holes that we’ve had over the last two years has been with cryptocurrencies: being able to buy, sell, and hold cryptocurrencies as a bank. Now we finally have a path,” Noto said on CNBC’s Squawk Box. After briefly exiting the crypto industry in 2023, SoFi restarted its crypto services in June, introducing international payment options and blockchain-based remittances.
Looking ahead, SoFi plans to introduce SoFi USD, a dollar-backed stablecoin backed by reserves, alongside its plans to incorporate cryptocurrencies into its lending and payments infrastructure. Noto emphasized that blockchain and cryptocurrencies are similar to a technological “supercycle” similar to artificial intelligence and will become the basis of the entire financial system. He added: “Stablecoins have the potential to revolutionize payments, but only if they are liquid and have no credit or term risk.”
Noto expressed concerns about the stability of stablecoins that are not backed by banks, questioning where their reserves are located and whether they pose credit or duration risks. “Just because a stablecoin is backed dollar-for-dollar, there is no guarantee that the dollar will be there when you want to liquidate,” he cautioned.
Members and market outlook
With more than $41 billion in assets, SoFi’s most recent quarterly results revealed net revenue of $962 million and a user base of 12.6 million members. Noto said 60% of surveyed members expressed an interest in investing in cryptocurrencies, and that he personally allocated 3% of his portfolio to Bitcoin, viewing cryptocurrencies as a technology investment rather than a currency play. “Imagine the early internet era,” he said, highlighting the transformative potential of blockchain networks and digital payment systems.
As traditional financial institutions increasingly incorporate cryptocurrencies and blockchain-based solutions, these developments signal a broader shift towards integrating digital assets into mainstream banking and finance, confirming the continued evolution of the crypto market.