Despite its wild volatility and mounting regulatory pressure in the US, another company has joined the ranks of those offering crypto trading services.
SoFi Enters Crypto Arena
San Francisco based student loan refinancing firm SoFi announced this week that it would offer crypto trading for three major digital currencies. According to CEO Anthony Noto, the most requested service from its 800,000 customers has been crypto trading and the firm has finally obliged.
“Feedback from our members has made it clear that a significant percentage are not only interested in learning more about cryptocurrencies but are also already buying and selling crypto. We’re very pleased to be adding this new product to SoFi Invest, as access, education, and keeping costs low for our members is at the heart of what we do.”
Bitcoin, Ethereum and Litecoin will initially be available to trade through the SoFi Invest service and app. The suite also includes ETFs and automated and active stock buying. SoFi also offers a service called Stock Bits, which is the ability to buy and sell fractional shares in over 100 popular stocks and ETFs including Apple Amazon, Alphabet and Tesla.
Noto spoke to Fortune saying that he has been interested in crypto and has invested himself.
“I believe in the power of distributed ledger technology. But one of the things about crypto is it’s not always broadly available in a way that’s easy, transparent and fast,”
SoFi, which first revealed its desire to offer crypto trading earlier this year, joins the ranks of Square, eToro, and Robinhood. These fintech firms offer a range of crypto related products and services to a primarily millennial customer base.
The company added that it will be buying crypto from Coinbase initially and offering commission free trading for an introductory period. The company makes its money from refinancing student loans but is looking to expand into crypto which is a growing market in the US.
The report added that SoFi Invest is a rapidly growing division of the company which now has over 100,000 users. Crypto trading services will be going live this week but only in a select number of states due to the minefield of regulatory requirements across the US.
The company added that it expects to secure all of the appropriate licenses soon and will roll out crypto trading services nationwide. The number of crypto trading platforms in the US is constantly expanding despite current market woes and increased pressure from regulators.