Online Loan Platform SoFi Will Offer Crypto Trading Through Coinbase
“Our target audience wants to see what the price of cryptocurrency is, and to buy it, ” SoFi CEO Anthony Noto told a group of reporters at the firm's New York offices Tuesday. “They have a desire to do that and in many cases they already are.”
Noto, Twitter's former chief operating officer, and a former managing director at Goldman Sachs, joined up with SoFi last January. He declined to define which digital coins will be readily available. The buying, selling, and price-checking of whichever cryptocurrencies they permit will be enabled by a partnership with popular trading platform Coinbase, valued at $8 billion after its newest financing round. Fidelity has a comparable plan with Coinbase, where users can view digital asset balances as part of their portfolio. However, Fidelity does not use the ability to purchase or sell a digital coin.
SoFi consumers can track prices for various cryptocurrencies
In addition to making it possible for such purchases, the collaboration will let SoFi consumers track the prices for various cryptocurrencies, similar to an arrangement Coinbase has for retail clients of Fidelity Investments, though the latter tie-up does not permit crypto trading. (Fidelity independently prepares to launch trading of digital assets for institutional clients through its own platform this year.).
Cryptocurrency trading will be readily available under the umbrella of SoFi Invest, which went live earlier this month. SoFi Money, another new arm of the business, will use a 2.25 percent APY cash account with no costs– signing up with a list of peers increasingly competing for customer deposits. Both items became more extensively available on Tuesday.
On Monday, the start-up declared two index exchange-traded funds that will waive management costs for the first year, encroaching on a market dominated by Vanguard and BlackRock's iShares. Through SoFi Invest, the company will likewise provide “active” investing with the help of a broker and automated, or “robo” calling.
The company is re-launching its home mortgages product line March 1 and Noto said SoFi plans to offer a charge card in the back half of 2019. Later on this year, it will also release joint accounts, “conserving vaults,” and roundups (comparable to Acorns' core product) “to make SoFi money a lot more helpful.”As for going public, Noto stated it's “not a priority” in 2019. However long-lasting, he said an IPO stays on the roadmap.SoFi was founded in 2011 with an objective of making college more affordable to students with consolidation loans offered by alumni, according to The New York Times. In that sense, it has roots in peer-to-peer finance. The company, later on, branched off into home loans and financial investment items.
Coinbase and SoFi both declined to comment on the joint project.