FinTech Firm SoFi Receives BitLicense from NYDFS

San Francisco-based financial firm SoFi has announced that it was granted a BitLicense from the New York State Department of Financial Services (NYDFS).

According to a press release, the fintech firm confirmed that the NYDFS granted a BitLicense, which would allow its users in the state of New York to trade digital currencies through its SoFi Digital Assets subsidiary.

The BitLicense acquisition comes just a couple of months after the firm launched in September its cryptocurrency trading services within its investment platform.

SoFi launched as a student loan refinancing platform and has ever since offered a varied portfolio of fintech services including online lending, such as student loans and mortgages. In addition to that, the platform also facilitates investing in other securities such as ETFs and stocks as well as robo-investing.

Following the announcement, SoFi will be authorized to support a total of six digital assets including Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Ethereum Classic (ETC), Litecoin (LTC) and Stellar (XLM). SoFi’s cryptocurrency offering sits alongside other investment vehicles including stocks and ETFs on its SoFi Invest application, released earlier this year.

In addition to the BitLicense, SoFi has acquired another license – a money transmitter license, which will help the firm offer crypto trading service to its clients.

“After a rigorous application process, SoFi can now provide its members in the state of New York a trusted, secure platform to trade crypto,” stated SoFi in a press release.

Whilst sharing more details about the license, CEO SoFi Anthony Noto noted that the decision to pursue a BitLicense was a result from client demand:

“Putting our members’ interests first is our top priority at 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.”

Noto further added that the approval is proof to SoFi’s ongoing commitment to earning the trust of regulators and stakeholders as the platform tries to expand their line of services and products targeted at investors.

As it is known, a BitLicense serves a major business license for cryptocurrencies with a number of terms and conditions such as rules on operating with digital currencies, its control, administration, maintenance, storing and issuing, among others.

The California-based financial firm is now one of 24 crypto-related firms that have been granted a BitLicense since 2015, including exchanges like Gemini and trading operations like Tagomi. Earlier this year, NYDFS granted a BitLicense to two subsidiaries of crypto derivatives firm Seed CX — Seed Digital Commodities Market LLC and Zero Hash LLC.