SoFi Bank’s Crypto Holdings Surge to $170 Million, Including $ADA and $DOGE

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SoFi, a banking institution headquartered in San Francisco, has recently announced in its second-quarter earnings report that its cryptocurrency holdings has surged to nearly $170 million. Among its prominent holdings, Bitcoin ($BTC), Ethereum ($ETH), Dogecoin ($DOGE), and Cardano ($ADA) stand out as the largest contributors.

The financial institution, which caters to more than six million clients, detailed its cryptocurrency portfolio, indicating that out of the total $166 million in holdings, Bitcoin accounts for $82 million, while Ethereum holds a substantial portion at $55 million. Cardano represents around $4.5 million, and Dogecoin, the meme-inspired digital currency, contributes $4.9 million to the portfolio.

The earnings report for the second quarter also unveiled SoFi's investments in other cryptocurrencies, including $2.1 million in Solana ($SOL), $3.5 million in Litecoin ($LTC), and $2.9 million in Ethereum Classic ($ETC). Additionally, the institution maintains holdings exceeding $10 million in various other digital assets.

An investor presentation further highlighted SoFi's robust growth within the cryptocurrency sector. The bank has successfully onboarded over half a million new clients and now facilitates trading for more than 22 different digital currencies.

SoFi doesn't merely hold digital assets; it enables its users to engage in buying and selling them, albeit without offering staking services. The institution initially introduced cryptocurrency services to its users in September 2019 through a partnership with Coibase, a cryptocurrency exchange listed on Nasdaq.

Significantly, SoFi formally obtained banking status in February 2022 following the acquisition of a banking license. This positioning sets it apart as one of the few traditional banks venturing into the cryptocurrency domain.

Tensions extend last year when a U.S. Senate committee expresses concerns about SoFi's adherence to banking regulations and the institution of an impending deadline in January 2024. U.S. Legislators have notable scrutiny towards digital assets, especially after the FTX collapse, with regulatory actions by the Securities and Exchange Commission (SEC) targeting leading exchanges like Binance and Conbase.