SoFi and Payward Strategic Alliance
SoFi Technologies, Inc. has formed a strategic alliance with Payward, the parent organization behind Kraken, to enhance capabilities in the realm of digital asset transactions and provide more robust banking services. This collaboration, revealed on a Thursday morning, is set to harness SoFi’s banking network which will enable Kraken to expedite financial transfers.
Introduction of SoFiUSD
The agreement also stipulates that Kraken will introduce the SoFi stablecoin, SoFiUSD, on its trading platform, facilitating a new way for users to buy, sell, and exchange this digital asset.
Opportunities for Institutional Clients
The partnership aims to create new opportunities for Kraken, particularly in appealing to institutional clients who prefer 24/7 continuous transaction capabilities. SoFi highlighted the importance of extending operations beyond conventional banking hours, as it streamlines money management and liquidity processes, ultimately embracing a more flexible financial environment.
David Ripley, Co-CEO of Payward, commented on the shifting dynamics of finance, stating, “As money and markets converge into an innovative financial framework, we need foundational structures that can keep pace. By working with SoFi, we can bridge this divide, benefiting both parties. Many users will begin their crypto journey through an app they already use for managing their payroll, which should seamlessly connect them to comprehensive and liquid market resources.”
Enhanced Pricing and Market Reach
Moreover, SoFi’s application currently facilitates the procurement of Bitcoin for buyers by utilizing a variety of marketplaces. This new partnership with Payward will extend SoFi’s reach by utilizing Kraken’s Prime service, allowing it to search globally across multiple crypto markets instantly for the best prices available. SoFi emphasized that this will enhance pricing offerings for its members on trades conducted within their app.
Market Reaction
In addition to the partnership news, SoFi’s stock, which is publicly traded on the Nasdaq, saw a more than 2% increase following the announcement. Nevertheless, the company’s shares have experienced a decline of over 4% in the last five trading days and a significant drop of 31% year-to-date.
