SoFi Retreats From Digital Assets, Will Cease Opening New Crypto Accounts: Report
Portfolio Pulse from Murtuza Merchant
SoFi Technologies Inc. is exiting the cryptocurrency market, instructing its crypto customers to either liquidate their accounts or transfer them to Blockchain.com. The move follows increased regulatory scrutiny and comes after SoFi obtained a bank charter in January 2022, which came with a two-year compliance period for its crypto operations. SoFi's crypto-related fees contributed approximately $6 million to its quarterly earnings, and its digital assets were valued at $139.4 million as of September 30. Customers have until December 19 to transfer their holdings to Blockchain.com.
November 29, 2023 | 6:29 pm
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SoFi Technologies Inc. is ceasing the opening of new crypto accounts and exiting the cryptocurrency sector due to regulatory challenges. This strategic shift may impact the company's revenue from crypto fees, which was $6 million in the last quarter.
Exiting the cryptocurrency market could lead to a loss of revenue from crypto-related fees for SoFi, which may negatively impact the stock price in the short term. The importance is significant given the $6 million in fees and $139.4 million in digital assets reported. The confidence level is high due to the clear decision and communicated actions to customers.
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