Now one of the country’s biggest fintech banks, SoFi, is prepared to reintroduce cryptocurrency investing. This action represents a dramatic reversal from their previous removal from the industry. In a live interview with CNBC, SoFi’s CEO Anthony Noto dropped the bombshell that his company has very different, exciting plans. He pointed to a recent “fundamental shift” in the regulatory playing field as a key driver behind this decision.
The acting head of the Office of the Comptroller of the Currency has just released potentially dangerous new guidance. This newfound clarity emboldens SoFi to relaunch its crypto business. This regulatory change is an enormous, transformational moment for fintech companies. Now, companies like SoFi can fully participate in the space by engaging with digital currencies once more.
SoFi had announced its exit from the crypto business last year, restricting its customers’ access to more than 20 other cryptocurrencies. When SoFi pulled out, customers were suddenly left looking at being routed to options such as Blockchain.com or having to sell all their assets. This drastic action had sent shock waves through the investor community, leaving many questioning the company’s commitment to innovation within this fast-paced financial technology world.
SoFi CEO Anthony Noto has declared that he’s “sure” about SoFi’s new direction for crypto in his interview with CNBC. He announced, “We’re going to get back into the crypto business, from which we unfortunately had to withdraw.” This feeling is what really drives SoFi to innovate and stay ahead of the regulatory environment and the market, which is shifting day-to-day.
Over the next six to 24 months, SoFi plans to integrate cryptocurrency and its underlying technology into all major product lines. Noto gave more details about this vision. He said their ambitions are as wide as those of any other fintech, saying they hope to apply technology end-to-end from lending to savings, spending, investing and protecting. This strategy improves customer experience. It uses the underpinnings of blockchain technology to make other financial services faster, cheaper and more secure.
SoFi wants to have cryptocurrency investing open to its customers by then, though that’s subject to the lack of any unexpected hurdles. The firm’s new ambitious migration back into the crypto industry is indicative of its larger, more recent, fintech-focused aspirations.
Fintech firms are once again choosing to return to the cryptocurrency space. This change is in direct response to the demand of consumers and the regulatory climate emerging around the climate crisis. With digital currencies quickly becoming the preferred currency of the masses, SoFi’s successful play could put it miles ahead in an increasingly crowded space.
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