SoFi Technologies Inc. (NASDAQ:SOFI) is withdrawing from the cryptocurrency market.
What Happened: The San Francisco-based firm informed its crypto customers on Wednesday about the necessity to either liquidate their accounts or transfer them to crypto exchange Blockchain.com, Bloomberg, reported.
Established 12 years ago primarily for student-loan refinancing, SoFi has broadened its service offerings significantly. In January 2022, it obtained a bank charter, subject to a two-year compliance period for its cryptocurrency operations.
SoFi was required to either secure regulatory approvals for its crypto business or exit the sector entirely.
The decision to ditch digital assets comes on the heels of increased regulatory oversight due to volatility concerns.
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Why It Matters: SoFi began its foray into cryptocurrency in 2019. It has since emerged to become a notable player in the sector (i.e., hosting events like Bitcoin Miami).
According to financial statements, brokerage-related fees, encompassing crypto fees, amounted to about $6 million for the quarter ending Sep. 30.
The company's digital assets were valued at $139.4 million as of the same date.
Current users are required to transfer their crypto holdings to Blockchain.com by Dec. 19. If not, their balances will be liquidated.
The specifics of the agreement with Blockchain.com remain undisclosed.
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