SoFi Technologies, Inc. and Payward, the parent company of Kraken, announced a partnership aimed at enhancing digital asset payments, liquidity, and banking experiences. The deal will allow Kraken to access SoFi's banking network to move money faster.
Banking Integration and Stablecoin Launch
Under the partnership, Kraken will gain access to SoFi's banking capabilities, including the SoFi Exchange Network (SEN). Kraken will list SoFiUSD, a stablecoin, on its exchange platform, allowing traders to buy, sell, and trade the asset.
The companies believe the partnership will create new opportunities for institutional clients seeking to settle transactions outside traditional banking hours. "Extending settlement beyond traditional banking hours also enhances the money movement process, allowing clients to move money and manage liquidity on an always-on schedule," SoFi said in a release.
David Ripley, Co-CEO of Payward, stated: "Money and markets are converging into a new financial paradigm, and the infrastructure underneath has to catch up. Collaborating with SoFi lets us close that gap, and it works in both directions. Millions of people will buy their first cryptoasset inside the app they already use for their paycheck, and the infrastructure behind that experience should connect them to deep, liquid markets built to operate at scale."
Improved Pricing and Market Response
As part of the arrangement, SoFi will use Kraken Prime to access crypto marketplaces globally and identify the best available prices for trades. "Kraken Prime will enable better pricing for SoFi members on trades they already make on the app," SoFi stated.
SoFi shares, which trade on the Nasdaq, jumped more than 2 percent following the announcement.
