SoFi launches institutional banking platform merging traditional and digital asset services
Companies can now store capital, transfer funds and complete settlements using traditional or digital currencies through one unified regulated infrastructure.
SoFi Technologies, a digital banking service provider, has unveiled Big Business Banking, an institutional platform designed to let enterprises manage both traditional currency and cryptocurrency operations through one unified regulated infrastructure.
Based on the announcement released Thursday, this new service gives corporations the ability to maintain deposits, transfer capital and complete settlements at any time of day using either conventional money or cryptocurrency, bringing together capabilities that have historically required separate relationships with traditional banks, digital asset custodians and specialized crypto service providers.
The platform additionally provides functionality for creating and redeeming the firm's proprietary stablecoin called SoFiUSD, giving business clients the capability to move between traditional currency and blockchain-based assets while maintaining their reserves inside a regulated banking framework.
The initial launch features participation from enterprises including Cumberland, BitGo, Bullish, B2C2, Fireblocks, Wintermute, Jupiter, Galaxy, Mesh Payments and Mastercard, demonstrating initial interest from organizations operating in trading, payment processing and digital infrastructure sectors.
According to SoFi, the infrastructure is planned to integrate with various blockchain networks, including Solana, to facilitate onchain transaction settlement.
This development arrives as the financial institution has been advancing further into the digital asset sector. Last June, SoFi relaunched cryptocurrency trading functionality, allowing customers to purchase, sell and store digital currencies, while simultaneously expanding blockchain-powered remittance capabilities to over 30 countries worldwide.
Last December, the company introduced SoFiUSD, a completely reserved stablecoin backed by US dollars and issued through its banking division, offering on-demand redemption and initially made available on Ethereum.
Crypto companies build digital asset infrastructure for institutions
As SoFi extends its offerings from the traditional banking sector, cryptocurrency-focused firms are developing comparable infrastructure designed to incorporate digital currencies into institutional financial systems.
During March, BitGo, a cryptocurrency infrastructure provider, introduced a financing solution that allows institutional clients to engage in borrowing and lending activities using liquid, staked and locked digital assets all within one custody account.
This past January, Fireblocks completed the acquisition of TRES, a crypto accounting solution provider, for $130 million, incorporating tax preparation and regulatory compliance features as institutional players require audit-ready documentation for their digital asset activities.
During the current week, Ripple incorporated digital asset functionality into its treasury management platform, allowing corporations to oversee both cryptocurrency and traditional currency holdings through a single integrated system.
In addition to broadening service offerings for institutional customers, multiple platforms are actively pursuing banking licenses in the United States. This Wednesday, EDX Markets, a cryptocurrency exchange, submitted an application to the Office of the Comptroller of the Currency seeking permission to create a national trust bank, with plans to segregate custody and settlement operations from trading activities through a separate non-depository institution named EDX Trust.
Earlier during this month, Zerohash filed an application for a national trust bank charter with the goal of expanding its stablecoin issuance and digital asset custody offerings, becoming part of a growing group of applicants that includes Coinbase, Laser Digital and Payoneer as corporations pursue regulatory authorization to deliver comprehensive crypto-integrated financial services.