SoFi Plans to Integrate Cryptocurrency Into Wealth Management Products by 2019
SoFi, an online personal finance company that specializes in student and personal loan refinancing, plans to integrate cryptocurrency into its online wealth management offerings by 2019.
SoFi launched in 2011 with an initial focus on student loan refinancing but has since pivoted to offer more expansive financial products. According to Noto, the company is planning to expand into home equity and brokerage financing. Towards its goal of becoming a digital banking platform, SoFi will also be launching SoFi Money, a personal checking account product.
— SoFi (@SoFi) May 22, 2018
SoFi’s decision to move into crypto mirrors a growing trend of traditional finance and fintech firms that are making the leap. On Wall Street, several investment banks, including Morgan Stanley and Goldman Sachs, have signaled that they are to creating dedicated cryptocurrency trading desks.
Fintech startups have also seen a significant boost from the crypto movement. Robinhood, the popular mobile trading app, recently announced that it has closed a Series D financing led by DST Global, raising $363 million at a $5.6 billion valuation to build out its cryptocurrency trading product. Additionally, social trading platform, Trading View, just scored $37 million in funding led by the growth-stage investment firm Insight Venture Partners, largely thanks to the current boom in the crypto and equity markets.
While little is known regarding the planned cryptocurrency product, it will likely be integrated with SoFi’s existing wealth management products.