The New York Department of Financial Services (NYDFS) has issued the BitLicense to SoFi Digital Assets, LLC. The license allows the firm to offer virtual currency and money transmitter services in the state.
SoFi Digital Assets is a subsidiary of Social Finance (SoFi), a San Francisco-based financial services company known for its student loan refinancing products. It allows its users to buy, sell and store cryptocurrencies easily.
SoFi becomes the latest company to obtain the BitLicense, a controversial license that lets firms operate in New York. Introduced in 2015, the NYDFS has now issued BitLicense to 24 companies, SoFi included.
SoFi Digital Assets launched in September, availing crypto trading to over 800,000 users. The firm partnered with Coinbase to offer trading in BTC, ETH, ETC, BCH, Litecoin and Stellar Lumens. The platform allows a $10 minimum investment, with the maximum daily transaction standing at $50,000. SoFi charges a 1.25% markup on all transactions, including it in the market price.
The inclusion of cryptos was a response to customer demands, Anthony Noto, the SoFi CEO stated at the time. He added, “Feedback from our members has made it clear that a significant percentage are not only interested in learning more about cryptocurrencies but are also already buying and selling crypto.”
On the BitLicense, Noto termed it a significant step towards offering their users with the financial products they want. SoFi is thrilled to offer crypto trading in New York, alongside active and automated investing, he revealed.
A SoFi spokesperson told The Block that cryptocurrencies have become the number one overall holding for their users. He further revealed that the company started applying for licenses to operate in all states in the U.S. while the crypto trading platform was still in development.
The NYDFS will continue to work with crypto companies, issuing more licenses to make New York a crypto hub, the regulator stated.
Linda Lacewell, the Financial Services Superintendent stated, “DFS is committed to fostering innovation in New York’s vibrant virtual currency sector and ensuring its competitiveness as a market for new entrants. The Department’s approval of SoFi’s virtual currency and money transmitter licenses provides consumers with more choices in a continuously evolving global financial services marketplace.”
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