SoFi Transfers Crypto Operations to Blockchain.com

• SoFi Shifts Crypto Clients to Blockchain.com Following Decision to Become a Bank
• Impact of Becoming a Bank Holding Company on SoFi's Crypto Services
• Blockchain.com Partnership Ensures Continuity of Crypto Services for SoFi Customers
• Crypto as a Significant Part of SoFi's Business
• The Role of Bakkt and Blockchain.com in User Migration

SoFi Shifts Crypto Clients to Blockchain.com Following Decision to Become a Bank

SoFi Technologies, a digital bank and financial services entity, is making a strategic move away from the cryptocurrency industry. The company is informing its customers that they have the option to transfer their digital assets to the platform provided by Blockchain.com, or they may choose to liquidate them. This change is slated to take effect from December 19, as conveyed in a recent communication to clients.

Impact of Becoming a Bank Holding Company on SoFi's Crypto Services

SoFi's transition from providing direct crypto services could be related to its recent decision to become a bank holding company. As part of the approval process, the U.S. Federal Reserve made a ruling that the company's cryptocurrency activities were not in compliance with banking regulations. However, they granted permission for these activities to continue for a period of two years, with a possible extension subject to further review, as per a regulatory filing.

Blockchain.com Partnership Ensures Continuity of Crypto Services for SoFi Customers

According to Blockchain.com's President, Lane Kassleman, despite the change in status, SoFi remains committed to offering cryptocurrency services to its clients, which is the main reason for the partnership with Blockchain.com. In his words, You'll still be able to link out to crypto products from the SoFi app. You just won't be able to access them within the SoFi domain.

Kassleman adds that the setup mirrors the way SoFi offers its insurance products. He emphasizes that the partnership brings hundreds of thousands of users and hundreds of millions of dollars. Moreover, Kassleman clarifies that this transition plan has been a year in the making due to the complexities involved in moving such a large user base.

Crypto as a Significant Part of SoFi's Business

Cryptocurrency has been a notable element of SoFi's business model, with digital assets held totaling $139.4 million as of September 30, as evidenced by a regulatory filing.

The Role of Bakkt and Blockchain.com in User Migration

The shift of user wallets to Blockchain.com will be facilitated for clients in certain U.S. states by crypto-focused broker-dealer Bakkt, an entity with which Blockchain.com has an agreement, as announced in a blog post by Blockchain.com.

Edited by Jonathan Stoker