SoFi, the San Francisco-based financial technology company best known for student loan refinancing, made a significant push into the cryptocurrency market on September 25, 2019, launching trading for Bitcoin, Ethereum, and Litecoin through its SoFi Invest platform. The announcement came on a day when Bitcoin was reeling from a massive flash crash, adding an extra layer of drama to the fintech company\’s long-awaited crypto debut.
TL;DR
- SoFi launched crypto trading for BTC, ETH, and LTC through SoFi Invest on September 25, 2019
- The service partners with Coinbase to fulfill customer cryptocurrency orders
- Crypto was the most requested feature among SoFi\’s existing customer base
- No commissions at launch, with a 1.25% fee to be added in subsequent weeks
- Not initially available in New York and New Jersey due to state regulatory requirements
SoFi Invest Embraces Digital Assets
CEO Anthony Noto revealed that the ability to buy and sell cryptocurrency had long been the single most requested feature from SoFi\’s existing customers. The company first hinted at its crypto ambitions in February 2019 when it announced plans to enter the space. Seven months later, the service went live — joining a growing roster of fintech companies including Square, Robinhood, and eToro that had already begun offering digital asset trading.
SoFi Invest, the company\’s app-based investing platform that also offers ETFs alongside automated and active stock trading, had already attracted over 100,000 customers and was reportedly growing quickly, according to a person familiar with the company\’s internal figures.
The Coinbase Connection
Rather than building its own cryptocurrency exchange infrastructure, SoFi partnered with Coinbase — one of the largest and most established cryptocurrency exchanges in the United States — to fulfill customer orders. This approach mirrors strategies employed by other fintech entrants, allowing SoFi to focus on user experience while relying on Coinbase\’s battle-tested trading and custody systems.
The pricing model is designed to attract new users: no commissions at launch, with a 1.25% fee scheduled to be introduced in the coming weeks. This competitive fee structure positions SoFi alongside other low-cost crypto trading platforms vying for mainstream adoption.
Noto\’s Personal Bullishness on Crypto
In an interview with Fortune, Noto — a former Goldman Sachs managing director and former COO of the NFL — revealed he has been personally invested in cryptocurrency for years, primarily in Bitcoin. He expressed belief in the potential of distributed ledger technology while acknowledging that crypto has historically not been \“broadly available in a way that\’s easy, transparent and fast.\”
\“I believe in the power of distributed ledger technology,\” Noto said, framing SoFi\’s crypto offering as part of its broader mission to make financial services more accessible to a younger, tech-savvy demographic.
Regulatory Hurdles Remain
Despite the nationwide launch ambitions, SoFi\’s crypto trading service was not immediately available in several states, including New York and New Jersey — two of the most important financial markets in the country. The company cited ongoing state regulatory licensing processes as the reason for the geographic restrictions.
Noto stated that SoFi expects to receive all necessary licenses in the near future, with nationwide availability anticipated within a few months. New York\’s BitLicense requirement, one of the most stringent crypto regulatory frameworks in the US, has been a well-known obstacle for companies seeking to offer digital asset services in the state.
Timing: A Crypto Crash and a Strategic Bet
The launch came at a curious moment. Bitcoin had just crashed from roughly $9,500 to below $8,000 on September 24, representing the sharpest single-day decline in months. At the time of the announcement, BTC was trading around $8,487, with the broader crypto market having shed approximately $35 billion in market capitalization.
However, the timing may prove prescient. SoFi\’s core strategy has been to expand beyond student loan refinancing into a comprehensive financial services platform — a push that has included personal loans, mortgages, and investment products. The company had cut its workforce by 7% in late 2018 as some of these non-core products struggled to gain traction, making the success of SoFi Invest and its crypto component all the more critical to the company\’s growth narrative.
Why This Matters
SoFi\’s entry into cryptocurrency trading in September 2019 represented another milestone in the gradual mainstreaming of digital assets. With an established customer base of millions of users — many of whom are younger, tech-comfortable borrowers and investors — SoFi brought a new demographic of potential crypto buyers into the market. The Coinbase partnership model also demonstrated how traditional fintech companies could leverage existing crypto infrastructure rather than building from scratch. While the launch was dampened by regulatory limitations in key states and a coincidental market crash, the broader trend was clear: cryptocurrency was becoming just another asset class available alongside stocks and ETFs on mainstream investing platforms. The question was no longer whether fintech would embrace crypto, but how quickly.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.