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How to make your fintech startup launch crypto operations: The SoFi case

FinTech startup SoFi – known for its online loan services – is partnering with the main crypto exchange, Coinbase, based in the United States, to implement support for cryptocommerce.

About Sofi

Sofi, based in San Francisco, will launch its cryptoservices for the second quarter of 2019. Sofi CEO Anthony Noto, who was previously CEO of Twitter operations and also CEO of Goldman Sachs, told CNBC:

“Our target audience wants to see what the price of the cryptocurrency is and buy it, they have the desire to do that and in many cases they are already doing it”.

The decision to include crypto

The purchase, sale and control of cryptocurrency prices will be launched under the aegis of SoFi Invest, a new investment product that came into operation earlier this month. Although Noto did not disclose which cryptocurrencies should appear on the list, he proposed that the notorious volatility of digital assets and the prolonged crypto-winter may in fact be considered an advantage by some. It is a “two-sided coin”, it is said, noting that “some people may see it as an opportunity”.

User deposits, another important thing

In addition to cryptoservices, SoFi – which was launched with an initial focus on student loan funding in 2011 – is also reportedly introducing an annual percentage performance account for user deposits. It has also submitted an application for two long-traded funds, a credit card and a long-term initial public offering (IPO).

As reported yesterday, Coinbase’s professional trading platform, Coinbase Pro, has just launched support for trading the Ripple XRP token, with commercial pairs against the US dollar, the Euro and Bitcoin (BTC).

More cases like this

This January, Robinhood – a popular stock trading application that ventured into crypto commerce in February 2018 – obtained a BitLicense to operate in the state of New York by local regulatory bodies.

Published inFintech
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