SoFi Users Can Now Trade Bitcoin, Ether, and Litecoin
Social Finance, Inc. (SoFi), a United States-based online personal finance platform that offers student loan refinancing, mortgages, and personal loans has finally launched its cryptocurrency trading service. SoFi users can now trade bitcoin (BTC), ether (ETH) and litecoin (LTC) through its SoFi Invest service, reports Fortune on September 25, 2019.
SoFi Rolls Out Crypto Trading Service
As reported by BTCManager earlier in February 2019, SoFi inked a strategic partnership deal with Coinbase cryptocurrency exchange, to enable it to add bitcoin price checking and trading to its growing list of financial products.
“Our target audience wants to see what the price of bitcoin is, and to buy it. They have a desire to do that and in many cases they already are,” hinted CEO Anthony Noto at the time.
Fast forward to September 2019 and SoFi has kept its promise of meeting the age-long demand of its clients by adding support for bitcoin, ether, and litecoin on the platform.
Despite the super volatile nature of blockchain-based cryptocurrencies and the recent slump in the price of bitcoin, Noto has revealed that cryptocurrency remains “the most requested service” from its existing clients.
The 51-year-old former COO of Twitter has also hinted that SoFi’s latest crypto offering will complement its suite of app-based investment vehicles which include exchange-traded funds (ETFs), and automated stock buying.
Not Available to New York Investors
Thanks to its existing alliance with Coinbase, SoFi says the crypto exchange giant will be its primary liquidity provider and initial trading on its platform will be commission-free, but it will add a 1.25 percent trading fee a few weeks after full trading begins.
Due to regulatory constraints, SoFi has revealed that its cryptocurrency trading service will not be initially available in a number of jurisdictions including New York and New Jersey.
However, the firm is optimistic it will succeed in securing the relevant licenses from the New York Department of Financial Services (NYDFS) and other regulators shortly. And once that is achieved, crypto trading on SoFi will be available in all states across the nation in the coming months.
A Strong Belief in Cryptos
While business magnates like the Sage of Omaha, Warren Buffett and several others still maintain a strong hatred for Bitcoin and other cryptocurrencies, Noto has stated clearly that he has always been fascinated by cryptocurrency and has been investing in Bitcoin for a year, even though he’s well aware of digital asset’s flaws.
Further explaining the reason behind SoFi’s decision to integrate crypto trading into its business, Noto reiterated that:
“I believe in the potential of blockchain technology. But one of the things about crypto is it’s not always broadly available in a fast, easy and transparent way.”
Despite the regulatory dark clouds that still surrounds the cryptospace, more and more institutional investors keep joining the bitcoin bandwagon.
On September 23, 2019, the much anticipated physically-settled Bakkt Bitcoin Futures Contracts went live, even though the significant milestone is yet to have a positive effect on the bitcoin price.