Financial technology company SoFi announced the phased rollout of SoFi Crypto, a new product allowing its large customer base to buy, sell, and hold dozens of cryptocurrencies directly within their main banking application.
This development is highly significant because it directly integrates crypto trading into a traditional banking and lending ecosystem, eliminating the need for users to transfer funds to external, crypto-native exchanges like Coinbase or Kraken for simple trading.
Bridging the divide
SoFi Crypto will be fully integrated into the main SoFi banking app, enabling customers to transfer money instantly between their checking, savings, and crypto accounts. This convenience is coupled with the regulation and security associated with a large, chartered financial institution, addressing one of the primary hurdles to mass retail adoption.
SoFi’s Chief Executive Anthony Noto stated that this is only the start of the bank’s broader strategy to integrate blockchain technology throughout its system. Future plans include leveraging blockchain to power global crypto-enabled remittances to make international money transfers quicker and more affordable. SoFi also plans to introduce a proprietary U.S. dollar stablecoin and incorporate crypto into its lending and infrastructure services.
While major banks like Morgan Stanley and Charles Schwab have only announced plans to offer products, SoFi’s immediate implementation of a full trading feature gives it a substantial first-mover advantage among major consumer banks, setting a new standard for how traditional institutions engage with digital currencies.