SoFi Technologies, a nationally chartered bank, has begun offering cryptocurrency trading services to its U.S. customers. The rollout started Monday and will expand in phases, allowing more clients access to trade popular digital assets such as Bitcoin (BTC) and Ether (ETH).
CEO Anthony Noto told CNBC that SoFi is the first nationally chartered bank to provide crypto trading to consumers, a move made possible by regulatory clarity from the Office of the Comptroller of the Currency (OCC) easing restrictions on banks’ involvement with cryptocurrencies.
Phased Rollout of Crypto Services
The crypto trading service will feature dozens of cryptocurrencies and is currently accessible to a limited number of customers, with broader availability expected in the coming weeks. SoFi had exited the crypto sector in 2023 to meet regulatory requirements associated with obtaining a banking charter but reentered the market in June by enabling international payment options with crypto conversions and blockchain transactions.
Plans for Stablecoin and Integration
SoFi also announced plans to launch SoFi USD, a stablecoin fully backed by dollar reserves. The bank intends to integrate blockchain and crypto technology into its lending and payment infrastructure to facilitate faster transactions and borrowing options.
“We believe blockchain and cryptocurrencies are a super cycle technology just like AI, and they will be pervasive across the financial system,” Noto said. He emphasized the importance of liquidity and the absence of credit or duration risks in stablecoins.
Noto expressed caution regarding stablecoins issued by non-bank operators, questioning the security and bankruptcy protections of their reserves. “Just because it’s backed dollar for dollar doesn’t mean those dollars will be there when you try to liquidate,” he said.
Customer Interest and Company Metrics
SoFi holds over $41 billion in assets and reported third-quarter net revenue of $962 million with a member base of 12.6 million, according to Business Quant. Noto noted that 60% of surveyed members expressed interest in crypto investments. He revealed personally allocating 3% of his investment portfolio primarily to Bitcoin.
Explaining the rationale, Noto compared crypto networks to early internet investments: “These are networks, communication networks used for payments and other applications,” he said, likening investing in crypto technology to buying a stake in the World Wide Web in 1990.
