Crypto Holdings of US Bank Reach $166M – Q2 Earnings Report

Crypto Investments Increase in SoFi Bank

According to the second quarter (Q2) earnings report, the San Fransico-based SoFi bank holds almost $170 million in crypto on its balance sheet. This is a significant increase compared to the previous quarter, with the bank now serving over six million customers.

The crypto investments include Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Cardano (ADA), Solana (SOL), Dogecoin (DOGE) and Ethereum Classic (ETC). Out of the total $166 million, the bank holds $82 million of BTC and $55 million worth of ETH. Dogecoin (DOGE) is in third place with almost $5 million, while Cardano (ADA) holdings total $4.5 million.

SoFi has been offering crypto services to its customers since September 2019, in collaboration with Coinbase crypto exchange. Over 500,000 customers have been onboarded, with the bank now supporting trading for more than 22 cryptocurrencies. Although the bank does not provide any staking services, it has obtained a banking license in February 2022, making it one of the few traditional banks providing crypto services.

Crypto and Traditional Finance: An Uncertain Future

The U.S. Federal Reserve and lawmakers had a negative reaction to SoFi’s crypto offering. A U.S. Senate committee questioned SoFi’s banking law compliance in November 2022, with a January 2024 deadline looming. SoFi Bank has not responded to Cointelegraph’s inquiry regarding the compliance deadline and its potential effect on crypto holdings.

The crypto sector is seen as a major step towards mass adoption, but the events of 2022 and the collapse of crypto-focused banks in 2023 have cast a shadow of uncertainty over the future of partnerships between crypto and traditional finance. U.S. lawmakers sought to contain the damage and protect customers’ funds, but the collapse of these banks has caused regulators to blame crypto for the failure.