SoFi Invest Obtains New York BitLicense

News, Regulation | December 4, 2019 By:

Online personal finance company Social Finance, Inc. (SoFi) has received regulatory approval from the New York State Department of Financial Services (NYDFS) to allow SoFi Invest customers in the state to trade cryptocurrencies on its platform.

Founded in 2011, SoFi provides student loan refinancing, mortgages and personal loans. The company’s products for borrowing, saving, spending, investing, and protecting give their more than half a million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people.

In September of this year, SoFi launched the ability to trade cryptocurrencies within the overall SoFi Invest platform. The platform offers both automated (robo-advising) and active investing (trading) with no fees on stock trading or account minimums. The SoFi Invest platform claims to be the first of its kind to offer automated and active investing with stocks, ETFs and crypto through a single app.

The BitLicense, which was introduced and designed by Benjamin Lawsky, New York’s first Superintendent of Financial Services, in July 2014 to regulate cryptocurrency, will enable SoFi to provide its members in the state of New York a trusted, secure platform to trade crypto.

“Putting our members’ interests first is our top priority at SoFi,” said Anthony Noto, CEO of SoFi. “That includes both offering individuals the products they want, like cryptocurrency within SoFi Invest, as well as protecting them, through a solid regulatory framework like that created by the New York State Department of Financial Services. We’re thrilled to now be able to offer the trading of cryptocurrency, in addition to active and automated investing, as part of SoFi Invest in New York State, in addition to the full suite of SoFi products that help our members borrow, save, spend, invest, and protect their money.”

BitLicense approvals have been among the most difficult credentials to procure for crypto businesses seeking to operate in New York. The NYDFS uses a thorough, measured approach to review applicants and ensures companies adhere to high standards of consumer protection, security, and fraud-prevention.

“This approval is a testament to our ongoing commitment to earn the trust of regulators and stakeholders as we try to offer investors more choice for products and services across the country,” Noto said.