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Social Finance Inc (SoFi) gets approval for launching a bank on the condition that it doesn’t engage in Crypto

The Office of the Comptroller of the Currency (OCC) has given Social Finance Inc. (SoFi) which provides loans and financial services to students, a conditional approval to establish a full-service national bank, as long as the new firm “does not engage in any crypto-asset operations or services,” the OCC stated on Tuesday.

The authorization accounts for the takeover of Golden Pacific Bank, National Association, an FDIC-insured national bank, will be by SoFi Bank, National Association.

The approval covers SoFi Bank, National Association’s acquisition of Golden Pacific Bank, National Association, an FDIC-insured national bank. 

According to the agency, SoFiBank, which will be headquartered in Cottonwood Heights, Utah, will be required to meet specific capital contribution standards as well as adhere to an operational agreement.

View of OCC For SoFi

The OCC gave SoFi preliminary authority to establish a national bank in October 2020, pending a comprehensive review of all relevant material.”Today’s decision brings SoFi, a large fintech, inside the federal bank regulatory perimeter, where it will be subject to comprehensive supervision and the full range of bank regulations, including the Community Reinvestment Act,” says the statement by OCC

In a statement, OCC Acting Comptroller Michael Hsu said. “This levelled the playing field and ensured that SoFi’s deposit and loan activities were carried out safely and soundly, including limiting the bank’s capacity to engage in crypto-asset transactions.”

SoFi Stock Market

SoFi has a subsidiary that trades digital assets and became public last year after merging with a special purpose acquisition business. SoFi’s stock closed Tuesday at just over $12 a share, down more than 8%.

 SoFi has a market capitalization of $8.6 billion.

Conclusion

SoFi Bank, N.A. will have $5.3 billion in total assets and $718 million in capital and will offer local commercial-focused loans and deposit products similar to those offered by Golden Pacific.

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