SoFi Technologies and Kraken's parent company, Payward, have disclosed that the two parties have reached a cooperation regarding US dollar settlement and stablecoin circulation. Once the cooperation is implemented, Kraken will be integrated into SoFi's US dollar settlement network, and the stablecoin SoFiUSD issued by SoFi will also be launched on Kraken, becoming available to retail, professional, and institutional customers.
Kraken connects to the SoFi US dollar clearing network
According to company disclosures, Payward will join SoFi Exchange Network, which will be referred to as SEN. This network will enable institutional clients of Kraken to continue to complete US dollar clearing and settlement outside of traditional bank business hours, achieving nearly round-the-clock fund transfers.
SoFi CEO Anthony Noto stated that during continuous market trading, the financial system should not come to a halt. For trading platforms, such arrangements help to shorten the time it takes for funds to switch between the banking system and the crypto market.
SoFiUSD will go live on Kraken.
As part of the collaboration, Kraken will launch the SoFi stablecoin SoFiUSD, targeting retail, professional, and institutional customers. SoFi previously positioned this stablecoin as a tool for trading, payments, and corporate transfers. With its integration into a major trading platform, the scope of its usage scenarios has further expanded.
SoFi launched SoFiUSD in December last year. In May this year, the company extended this stablecoin to the Solana blockchain, demonstrating its continued advancement in on-chain payment and transfer capabilities.
SoFi Introducing Kraken Prime Liquidity
SoFi will also incorporate Kraken Prime into its sources of liquidity for encrypted transactions. The company states that this will provide additional pricing support for encrypted transactions within SoFi App and is expected to improve the transaction prices for users. Both parties also mentioned that compliance hosting services may be added in the future.
Prime broker usually serve institutions and trading platforms, providing services such as transaction execution and custody. For SoFi, this means that its encryption business not only restores retail transactions but also complements a more comprehensive infrastructure.
Additional information:SoFi ceased its early-stage cryptocurrency business two years ago, and then announced its return to the market in June last year, starting to gradually open trading for up to 30 different crypto assets in November. On the Payward front, in March of this year, it facilitated the integration of Kraken Financial into the Federal Reserve's payment system, and subsequently collaborated with NASDAQ on tokenized stocks.
