A Coinbase Connection
SoFi, an online lending platform, is the latest financial institution to get into the crypto business, following in JP Morgan’s footsteps. They won’t be launching a native coin, however, but will instead be working with Coinbase to offer crypto trading support, as reported on February 26, 2019.
This service will take off in the second quarter of 2019, and according to the firm, it has been in demand for quite a while.
“Our target audience wants to see what the price of cryptocurrency is, and to buy it,” SoFi CEO Anthony Noto said. “They have a desire to do that and in many cases they already are.”
The new rollout will be under the SoFi Invest umbrella and will allow for the buying and selling of cryptocurrencies as well as on-demand price checks.
What Bear Market?
When the bear market first arrived in 2018, one of the biggest questions left to be answered was whether it would affect the level of mainstream investment enjoyed by the industry. This became even more interesting as the market saw a few short-lived spikes.
However, the management of SoFi has said that the bear market, and even the volatility of the market, hasn’t deterred them or their customers. Noto told that it might even be an advantage as some of their customers see it as a two-sided coin.
Admittedly, some bold investors might be drawn to the market volatility as its sudden spikes could mean huge profits despite the equally huge risk of loss. It does go to show that there is a real demand for institutional investors in crypto, and not just from the community seeking greater adoption. Mainstream investors are catching wind of the possibilities that exist in digital assets and everyone from pension fund managers to Nasdaq is embracing the technology.
Besides the new deal with Coinbase, SoFi also has plans to re-launch their home loans from March 1, 2019, as well as credit cards in the second half of 2019.