According to one report from 26th of February, SoFi, which is an online lending startup based in San Francisco, wants to permit its users to buy, as well as sell cryptocurrencies on its platform, through establishing a partnership with the digital asset exchange Coinbase.
The target market of SoFi interested in buying crypto
The new service is going to be available through SoFi Invest, and it is even supposed to go live in the next 3 months while several other services are going to be launched in the first half of 2019.
The startup has claimed that its target market is not just interested in seeing the prices of digital assets, but also in buying them.
Speaking to a lot of reporters at the offices of the startup in New York, Anthony Noto, who is the CEO of SoFi, said that their target audience wants to actually see what the price of crypto is and then buy it. The target audience even has the desire to do that, and in a lot of cases, they already did it.
He also added that despite the volatility, this may be the opportune time for some individuals to buy assets.
Noto, who previously worked for Twitter as the chief financial officer and managing director at the financial institution Goldman Sachs became part of the SoFI family last January.
Noto was not actually free to specify the digital coins which are going to be available on the trading platform of the startup.
Price-checking and trading have done through Coinbase
So far, the sure thing is trading, as well as price-checking of digital assets, is going to be done through Coinbase, one of the most famous crypto exchanges which are based in the United States.
Coinbase, which is actually now valued at $8 billion after raising $300 million of funding in the last quarter of 2018, has a similar partnership with Fidelity that recently gather-crashed into the cryptocurrency sector.
But, the deal with Fidelity is not offering the option to buy and sell digital coins. The trading of the digital assets is going to be available through SoFi Invest, which is another arm of the finance startup which went live during February.
Recently, the startup has also filed for two-zero-fee exchange-traded funds or ETFs. The platform is only going to be zero-fee for the first year as it ventures into a territory which is actually dominated by Vanguard and iShares of BlackRock.
The future valuation and plans of SoFi
The CEO of the firm said that an ICO or Initial Coin Offering is not a priority right now, but didn’t rule out the possibility of an IPO or Initial Public Offering in the long-term as it stays on the roadmap.
The company even decided to re-launch its home loans product earlier this month and has some plans to propose a credit card in theH2 of 2019.
Social Finance or SoFi, has been found in 2011 targeting millennial student-loan refinancing but since then, it has expanded its services to some areas like mortgage loans, mortgage refinancing, and wealth management.
The startup has also acquired Zenbanx, which is a banking startup in 2017. The deal permits the lending platform to deal with money transfers. The firm also has a valuation of $4.4 billion and already raised $1.9 billion from some big names which include SoftBank and PayPal founder, and the angel investor of Facebook named Peter Thiel.