SoFi Opens Banking Rails to Kraken in Sweeping Crypto Alliance

Key Takeaways

SoFi Opens Its Banking Network as Kraken Adds SoFiUSD

SoFi explained, in a release published on Sept. 3, that the partnership will provide Payward and Kraken with the firm’s banking capabilities, such as the SoFi Exchange Network (SEN). Alongside this, Kraken is going to list the stablecoin SoFiUSD on its exchange platform. Kraken traders will be able to buy, sell, and trade using the SoFi stablecoin asset.

The companies believe this will “unlock new pathways” for Kraken in regard to institutional clients who want to settle 23/7/365. “Extending settlement beyond traditional banking hours also enhances the money movement process, allowing clients to move money and manage liquidity on an always-on schedule,” SoFi said in the release on Thursday morning.

“Money and markets are converging into a new financial paradigm, and the infrastructure underneath has to catch up,” David Ripley, the Co-CEO of Payward, remarked in the release.

Ripley added:

“Collaborating with SoFi lets us close that gap, and it works in both directions. Millions of people will buy their first cryptoasset inside the app they already use for their paycheck, and the infrastructure behind that experience should connect them to deep, liquid markets built to operate at scale.”

Kraken Prime Targets Better Crypto Prices as SoFi Shares Jump

For users on the bitcoin buying side, SoFi’s application finds the bitcoin needed to sell to them. SoFi leverages various marketplaces for the source, and now, with the deal with Payward, the company will expand even further by using Kraken’s Prime service. With the Kraken Prime platform, it will provide SoFi with the ability to instantly scan every single crypto marketplace in the world, in order to find the cheapest price available at that exact second.

“Kraken Prime will enable better pricing for SoFi members on trades they already make on the app,” SoFi emphasized on Thursday. SoFi is a publicly traded company listed on the Nasdaq exchange, and shares jumped more than 2% on the news. Despite that recent climb, SOFI shares are down more than 4% over the last five trading sessions and down 31% year-to-date.