Kraken and SoFi partner to connect crypto trading with banking services

SoFi Technologies and Payward, the parent company of crypto exchange Kraken, have announced a partnership to link crypto trading with traditional banking services.

The deal will see SoFi route its customers’ crypto orders through Kraken Prime, Kraken’s institutional trading platform, which uses smart order routing to find the best prices across multiple trading venues. SoFi customers will not see any changes to their app.

What the partnership includes

• SoFi will send digital asset orders to Kraken Prime for execution.
• Kraken will list SoFiUSD, SoFi’s bank-issued stablecoin—a type of cryptocurrency pegged to the US dollar—on its exchange.
• Payward will join the SoFi Exchange Network, a real-time settlement system for banks.
• Kraken’s institutional clients will gain access to SoFi’s business banking services and 24/7 fiat settlement.
• Qualified custody services are planned for a later date.

Why this partnership matters

SoFi, which holds a national bank charter and serves 15.8 million members, became the first nationally chartered US bank to offer crypto services for retail customers last year. Its platform allows users to buy, sell, and hold bitcoin directly within their bank accounts.

For Kraken, this partnership follows other collaborations with traditional financial firms, including Deutsche Börse, Nasdaq, and Franklin Templeton, as it expands into offering stocks, bonds, and other assets.

Sources

• Bitcoin Magazine