SoFi Collaborates With Coinbase To Aid Its Users In Bitcoin Investment

by | Feb 27, 2019 | Cryptocurrency, Cryptocurrency News

SoFi | Bitcoin | Coinbase

Coinbase and SoFi have teamed up so that the users of SoFi Invest, could buy cryptocurrencies. Short for Social Finance, SoFi caters to young adults through a variety of financial products including lending.

Launched earlier this month, SoFi Invest also announced the launch of SoFi Money, in addition to the partnership of Coinbase. As per CNBC reports, SoFi Money will offer a 2.25% APY account.

The firm currently offers broker and “automatic” options. Dubbed as the “active” investment, the broker option enables users to trade stock easily from the comfort of their mobile device. While there are still fees involved with trading stocks, there is no charge on “transaction and management fees.”

SoFi expands its horizons

Expanding its wings with speed, the firm is launching several other products this year. A particular one features the “auto-saving” option that is the core of the Acorns business model. SoFi CEO Anthony Noto and a Twitter veteran said:

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

However, the platform did not elaborate that the customers will actually buy through the app or not. Coinbase is regulated on a state-by-state basis,  which is why Ripple XRP is not currently available to Coinbase Pro users in New York. Currently worth $4.4 billion, SoFi’s CEO said the company will not be filing for an initial public offering this year.

As for Coinbase, they haven’t made any official announcement about the SoFi partnership. In addition, to SoFi Invest, the platform also entered the arena with Robinhood, which recently tried and failed to offer bank accounts. Robinhood very much wanted to enter the space that SoFi already operates in but failed to get the proper regulatory approval. The 3% APY checking and savings accounts offered by Robinhood saw massive public interest, but regulators expressed concerns.

Better Prospects For Crypto

Mobile users now have more reasons to buy and hold cryptocurrencies in 2019. The eventual “ease of adoption” factor has diminished rapidly since the bull run of 2017. However, the actual demand for cryptocurrencies in daily life remains a key issue.

In real life scenarios, there are only a few places to spend cryptos. The trouble with accepting cryptocurrencies for merchants, for one there is a number of issues arises after the simple step of accepting. The issues include dealing with tax accounting and successfully processing payments. FIO Protocol and others are actively working on improving this experience but may be years away from solutions that genuinely help merchants.

Read More: A Bizzare ‘Who Wants to Be a Millionaire’ Crypto Scam Surfaces In India


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