Loan refinancer and BitLicensee SoFi is clear to launch a national bank in the US

Published at: Oct. 28, 2020

In an announcement on Wednesday, the Office of the Comptroller of the Currency (OCC) granted SoFi a conditional license to operate as a national bank in the United States.

The OCC is the office of the U.S. Treasury that regulates federal banks throughout the country. SoFi, which stands for Social Finance, is a fintech startup that has historically provided loans and refinancing services. In 2019, the firm launched crypto trading, and last December, the New York Department of Financial Services granted SoFi a coveted BitLicense. 

This new license will enable the firm to offer a wider range of services. Just today, the firm announced that it was also releasing a credit card with cashbash rewards that paid down personal and student debt

For its part, the OCC makes clear that SoFi Bank must clear certain hurdles for its charter to leave conditional status. Initial capital will be $550 million, of which the OCC requires 30% to be in cash.

The OCC could not be reached for comment as of publication time.

Tags
Law
Related Posts
Russian central bank policies stop Tinkoff from offering crypto trading, CEO says
Tinkoff, a major private bank in Russia, is struggling to offer cryptocurrency trading to its clients due to the central bank’s tough stance on digital assets. Tinkoff CEO Oliver Hughes said that the digital bank is willing to offer crypto trading services but is restrained by the Bank of Russia’s policies, CNBC reported. The executive announced the news at the Saint Petersburg International Economic Forum on Thursday, stating: “There’s no mechanism for us to offer that product to them in Russia at the moment because the central bank has got this very tough position.” Hughes said that the bank has …
Bitcoin / June 3, 2021
US banking regulator authorizes federal banks to hold reserves for stablecoins
Per an interpretive letter from the U.S. Office of the Comptroller of the Currency released on Monday, national banks will be free to hold reserve currencies for stablecoins. The new guidance reads, "We conclude that a national bank may hold such stablecoin 'reserves' as a service to bank customers." Alongside the announcement, Acting Comptroller of the Currency Brian Brooks noted that stablecoin services are already a part of many banks' activities: “National banks and federal savings associations currently engage in stablecoin related activities involving billions of dollars each day.” The letter does, however, specify that for now, this will only …
Regulation / Sept. 21, 2020
UPDATED: State-by-state licensing for crypto and payments firms in the US just got much easier
An organization of state regulators in the U.S. has announced a new streamlined process for money transmitter licensing that will save large operators — including firms — from getting separate licenses in every state. The Sept. 15 announcement from the Conference of State Bank Supervisors (CSBS) has set out parameters for state licensing that will involve a single exam administered by examiners from across the country. Nationwide payments firms, meaning those operating as money transmitters in 40 or more states, will be able to get a single license to operate throughout the U.S. There are currently 78 such firms in …
Regulation / Sept. 15, 2020
Presenting Crypto Finance Conference in St. Moritz
The annual Crypto Finance Conference (CfC), an international conference on digital asset and blockchain conceived for sophisticated investors and decision makers, will be held on Jan. 20–22, 2021. Among featured speakers there will be representatives of Winklevoss Capital, Swiss National Bank, the European Parliament, Ledger and others. Cointelegraph serves as the main media partner for the CfC St. Moritz 2021 and prepared a special page dedicated to the event. The program of the three-day event will include discussions on the macro-perspective and micro-perspective on the industry – on Jan. 20 and 21, and focus events about social impact and decentralization …
Adoption / Nov. 11, 2020
Hawaii Introduces Bill Authorizing Banks to Offer Crypto Custody
The Hawaii State Senate has passed the first reading of a bill authorizing banks to hold digital assets in their custody. The bill was introduced on Jan. 17 by five state senators, including the only Republican member of the Senate, Kurt Fevella. It passed the first reading on Jan. 21 and was then referred to the committees on Judiciary and Commerce, and Consumer Protection and Health on Jan. 23. The bill specifies the set of provisions which a bank must adhere to in order to provide custodial services for digital assets. Custodial services cover “the safekeeping and management of customer …
Regulation / Jan. 24, 2020