US Bank Sofi Technologies has launched crypto trading services to its customers, as clearer rules allow the crypto market to court more interest from traditional finance.
Sophie said on Tuesday that its crypto service aims to offer dozens of cryptocurrencies, including Bitcoin (BTC) and ether (Eth), and began a phased rollout on Monday, with more customers gaining access in the coming weeks.
SOFI CEO Anthony Noto said CNBC’s squawk box on Tuesday that his bank is the first and only nationally chartered bank in the Launch Crypto Trading in stance on how banks can engage with crypto in March.
“One of the loopholes we’ve had in the last two years is in cryptocurrency, the ability to buy, sell, and hold crypto. We’re not allowed to do that as a bank. It’s not allowed,” he said.
Sophie Withdraw from the crypto industry in 2023 as a condition of obtaining a bank charter in a stricter regulatory environment. The bank returned to crypto in June, when it Scroll through the international payment optionswhich allows conversions from fiat to crypto and delivery via blockchain.
Blockchain and crypto a “super cycle technology”
Sofi also plans Introducing SoFi USD, a stablecoin Backed dollar-for-dollar by reserves, and integrate crypto into lending services and infrastructure for faster borrowing and repayment.
“We believe that blockchain and cryptocurrencies are a super cycle technology like AI, and it will be pervasive in all financial systems,” Noto said.
He added that StableCoins will fundamentally change payments, if they have liquidity and do not carry credit risk or duration risk.
“I’m really concerned about StableCoins from operators that aren’t banks. Where are the reserves sitting? Is there a credit risk for the reserves? Is there a credit risk for the reserves? Are the reserves losses?” he said.
“Those are the three elements you have to think about in any stablecoin you use. Just because it’s dollar for dollar doesn’t mean those dollars are going to be there when you try to liquidate.”
Members return to crypto transfers
Sofi has over $41 billion in assets, according on Interim Metric Platform Business Quant. The bank’s third-quarter results list Its net income as $ 962 million and shows a member base of 12.6 million people.
Related: How tradfi banks are moving forward with new StableCoin models
Noto said that 60% of bank members surveyed are interested in crypto investments and also revealed that he allocates 3% of his portfolio to crypto, mainly Bitcoin.
“We have exposure to it because I believe we’re investing in a technology not a currency. The analogy I use with people is imagine if in 1990 you could buy a piece of the whole world around the world with some coin called a World Wide Web Coin.”
“It’s very similar to this. These are networks, communication networks that are used for payments and other applications,” Noto added.
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