In an interview, Blockchain.com President Lane Kassleman disclosed that the partnership with SoFi Technologies (SOFI) results in the onboarding of hundreds of thousands of users. Simultaneously, it involves participating in transactions totaling hundreds of millions of dollars.
SoFi Technologies, an online banking and financial services company, is discontinuing its cryptocurrency operations.
In an email sent to customers, it announced that customers can either transfer their digital assets to Blockchain.com’s platform or opt for liquidation. The cessation is set to take effect on December 19.
Navigating Banking Regulations Amid Cryptocurrency Pursuits
This strategic shift by SoFi may be connected to its pursuit of becoming a bank holding company. Approval from the U.S. Federal Reserve came with a condition that its crypto activities would not comply with banking regulations.
However, it was granted a two-year window to continue these operations, with the potential for extensions, as detailed in a regulatory filing reported by Bloomberg.
Lane Kassleman emphasized that despite SoFi’s withdrawal from direct crypto services, the intention to provide such services to its customers persists through the partnership with Blockchain.com.
In an interview, Kassleman clarified that users retain the ability to access crypto products from the SoFi app. However, this access is outside the SoFi domain. He drew a parallel with the company’s approach to offering insurance products.
Blockchain.com and SoFi Technologies Collaborate on Crypto Services
According to Kassleman, this collaboration involves a substantial user base, numbering in the hundreds of thousands. Additionally, it encompasses transactions amounting to hundreds of millions of dollars.
He emphasized the meticulous planning involved in the partnership. This indicates that preparations spanned over a year due to the intricate process of transitioning users.
As of September 30, SoFi’s digital assets totaled $139.4 million. This highlights the significance of cryptocurrency in its overall business strategy, as detailed in regulatory filings.
To ease the transition of users to Blockchain.com’s wallets in specific U.S. states, the crypto-focused broker-dealer Bakkt will play a crucial role. This partnership is underscored in a blog post by Blockchain.com.