By SoFi | Nov 29, 2023 | invest, SoFi News | Comments Off on An Update on SoFi’s Crypto Services
At SoFi, our mission has always been clear: to help you get your money right. Everything we offer—from investment accounts to member benefits—echoes this mission. However, sometimes this means making changes to our business.
After careful consideration, we’ve made the decision to discontinue our crypto services by the end of this year. To ensure our members can continue investing however they want, we are giving members the option to migrate their crypto holdings to Blockchain.com, one of the leading cryptocurrency platforms, to ease the transition. Crypto members’ can choose to either migrate their accounts and assets to Blockchain.com, or to liquidate their holdings with all transaction fees from selling crypto reimbursed.
What Does this Mean for Members?
SoFi will no longer be opening new crypto trading accounts, but all existing members with active crypto accounts can buy and sell crypto as usual. To ensure each member can choose the option that works best for them, they can choose either of the following:
Blockchain Migration
In order to make this transition seamless, SoFi will handle migrating members’ crypto holdings to Blockchain.com. SoFi members only need to opt in via the SoFi web or app and the rest is handled. If members do not agree to the migration, all crypto holdings will be liquidated and funds will be deposited into their brokerage accounts after the migration is completed.
SoFi and Blockchain.com will send new account information to all members so they can log in and start trading shortly after the migration is completed. Members will no longer be able to trade any cryptocurrency with SoFi as of Friday, 12/19.
Due to local availability with Blockchain.com, members in Hawaii, Louisiana, New Jersey, Nevada, Tennessee, Texas and Virginia may need to sell certain coins prior to migration (more details in the FAQ section here).
Close SoFi Crypto Accounts
For members that prefer not to migrate their holdings to a Blockchain.com account, they can liquidate their holdings by end of day 12/18 (11:59 PM ET / 8:59 PM PT).
SoFi will reimburse all fees on crypto sales through 12/19 to ensure the migration is as frictionless as possible.
New York State Residents
For members residing in New York State, SoFi will not migrate accounts to Blockchain.com due to local availability. Members can sell their crypto assets and close their accounts by end of day 1/27 (11:59 PM ET / 8:59 PM PT).
If members do not sell before 1/27, SoFi will liquidate and close the crypto accounts on 1/28, and deposit any proceeds from the sales into the members’ brokerage accounts shortly after the migration is completed. All transaction fees from selling crypto will be reimbursed by 1/30.
It’s important to us to ensure members can select the path forward that best suits their needs. In addition to reimbursing all transaction fees from selling crypto, SoFi’s investment specialists will be available to help members navigate this process from start to finish as needed.
Why Blockchain.com?
The decision to work with Blockchain.com on this migration for members was due to their long-standing work in the cryptocurrency industry, and particularly their dedication to an intuitive user experience and abundant educational resources.
Additionally, Blockchain.com offers a variety of services beyond buying, selling and holding crypto, including:
1. All in One Place: Buy, sell, swap, and self-custody your crypto in one app for a simple, seamless experience.
2. DeFi Wallet Access: Members will be able to explore the option to self-custody their crypto using Blockchain.com’s DeFi Wallet, giving members greater control over their assets and seamless access to the decentralized finance space.
3. Advanced Trading Features: Members will enjoy a new, expanded range of advanced trading features and tools. Blockchain.com provides a comprehensive platform for both beginners and experienced traders alike.
4. Educational Resources: Blockchain.com is committed to empowering investors beyond the platform by providing access to a wealth of educational resources to stay informed and make confident decisions in the crypto space.
What does this mean for SoFi Invest?
The decision to make changes to SoFi’s cryptocurrency model does not impact other SoFi Invest offerings (e.g., brokerage accounts, IRAs, etc).
SoFi will continue to invest in expanding our products and services, as well as improve upon our current offerings. In recent months, SoFi launched the biggest upgrade to SoFi Invest’s design since launching in 2019, as well as launching a 1% match to IRAs and offered access to some of the most anticipated Initial Public Offerings (IPOs) of the year via the SoFi IPO investing platform.
SoFi is constantly looking at ways to offer members the best experience and empower them to achieve financial independence. SoFi will have more exciting news to share in the coming months as well.
Looking forward
Putting members interests first has always been SoFi’s top priority, and we’re here to make the migration as seamless as possible while continuing to offer members access to all investment opportunities to ensure they can reach their financial goals
We truly appreciate members’ understanding as we navigate this migration and remain committed to our mission of doing everything we can to help members get their money right.
Disclosure
1. By agreeing to the migration: You’ll be accepting Blockchain.com’s user agreement . If you’re in HI, LA, NJ, NV, TN, TX, or VA, you’ll also be accepting Blockchain.com’s crypto service provider Bakkt’s user agreement . Your customer agreement and digital assets with SoFi Digital Assets, LLC will be transferred to Blockchain.com, Inc. and your customer agreement will be amended and restated to the terms of use applicable to Blockchain.com customers; except, if you’re in HI, LA, NJ, NV, TN, TX, or VA, your customer agreement and digital assets with SoFi Digital Assets, LLC will be transferred to Bakkt Crypto Solutions, LLC (or its affiliate) and your customer agreement will be amended and restated to the terms of use applicable to Bakkt customers.
Social Technologies, Inc. (“SoFi”) is compensated by Blockchain.com for each customer who opens a crypto account and transacts on the Blockchain.com website through the SoFi-Blockchain.com partnership. Investing in cryptocurrencies can be volatile and involves a high degree of risk. SoFi is not affiliated with any third party companies and this is not an endorsem*nt of a third party company’s products or services.
2. SoFi Invest refers to the two investment and trading platforms operated by Social Finance, LLC and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA(www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of SoFi Digital Assets, LLC, please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or pre-qualification for any loan product offered by SoFi Bank, N.A.
3. This is not an offer, or solicitation of any offer to buy or sell any security, investment or other product.
Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Past performance, historical returns, future projections, and statistical forecasts are no guarantee of future returns or future performance. The firm reserves the right to monitor and retain all incoming and outgoing communications as permitted by applicable law.
SoFi doesn’t provide tax or legal advice. Individual circ*mstances are unique. Consult with a qualified tax advisor or attorney about your specific needs.
See terms at sofi.com/iramatchterms for full details about the offer.
4. Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement https://www.sofi.com/iporisk/. This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation https://support.sofi.com/hc/en-us/articles/360058602892-How-does-SoFi-allocate-IPO-shares.
