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SoFi to Allow Trading by Collaborating with Coinbase

5 years ago

SoFi is a Fintech startup which was developed to help youngsters through different types of financial products as well as trading. SoFi is a short form for Social Finance which was started in February. SoFi is mainly famous for the online lending services that it offers. On February 26th, it was reported by CNBC that the new startup would enter into a partnership with the major digital currency exchange, Coinbase so that SoFi can offer cryptocurrency trading.

The main focus of SoFi in 2011 was to offer student-loan along with cryptocurrency services, and it has been reported that in addition to this, for user deposits they have introduced a 2.25% Annual Percentage Yield account. It has both automatic and broker-based trading options and trading with a broker is known as ‘active investment.’ The headquarters of SoFi is in San Francisco, and their cryptocurrency services will be launched between April and June of 2019. Previous chief operating officer of Twitter and the managing director at Goldman Sachs, who is now CEO of SoFi, Anthony Noto reported about the launch that will happen in the third quarter of 2019.

The company is offering services from their smartphones like all other service providers along with many other products in this year. One product among them which will be the fundamental feature of Acorns business model, ‘auto-saving’ option.

Under the guidance of SoFi investment the monitoring of price, buying, and selling of digital currency will be initiated which is the latest product for investing launched by them. It is not specified by SoFi as to which cryptocurrencies the users can buy with the help of the app. It was suggested by Noto that the infamous volatile nature of crypto assets and prolonged crypto winter might prove to be advantageous by a few users. He added that SoFi coin is a double-sided coin because of which some people might look at this as an opportunity.

At present, the SoFi coins are worth $4.4 billion said the CEO and they would not be offering any Initial Coin Offering for this year. There has been no official statement made by Coinbase that they have partnered with SoFi. Apart from SoFi investment product offered by them, they are setting foot in the forum along with Robinhood. Robinhood is a firm that recently made an attempt to provide bank accounts but failed.