Sofi started offering crypto services even before it became a bank and its banking license might change the way it hodl crypto.
San Fransico-based Sofi Bank revealed it holds $170 million in crypto on its balance sheet in the Q2 earning report. The United States bank that serves over 6 million customers has seen a significant increase in its crypto holdings compared to the last quarter.
The bank holds Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Cardano (ADA), Solana (SOL), Dogecoin (DOGE) and Ethereum Classic (ETC). Out of the total $170 million investment, the bank holds $82 million worth of BTC followed by $55 million worth of ETH, DOGE took the third spot with $5 million and ADA is fourth with $4.5 million. An investor presentation also revealed that SoFi onboarded over 500,000 customers and now supports trading for over 22 cryptocurrencies.
Sofi Bank not only hodl crypto but also allow customers to buy and sell various cryptocurrencies but doesn’t offer any form of staking services. The U.S. bank started offering crypto services to its customers in September 2019 in partnership with the Coinbase crypto exchange.
However, it wasn’t a bank when it first started offering crypto services and only obtained the license in February 2022, making it one of the few full banks to offer crypto services.
Sofi Bank’s crypto offering however has not gone down well with the Federal Reserve and lawmakers. In Nov 2022, a U.S. Senate committee questioned Sofi’s banking law compliance, while reminding it of the January 2024 deadline. Cointelegraph reached out to Sofi Bank to get clarity on its compliance deadline and how it would change its crypto holdings, but didn't receive a response at press time.
Related: Bitcoin ETFs: Even worse for crypto than central exchanges
Crypto’s association with mainstream banking was seen as a crucial step for mass adoption. However, the downfall of several crypto giants followed by the collapse of crypto-friendly banks has cast a shadow of doubt on the future of such associations.
The U.S. lawmakers rushed to contain the damage and save customers' funds but definitely put a dent in such partnerships for the future as regulators blamed crypto for the bank's collapse.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
