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NYDFS grants SoFi’s BitLicense, allowing New York residents to trade cryptocurrency

San Francisco-based SoFi announced on Tuesday that its application for a BitLicense was approved by New York State regulators. 

The financial technology company said the New York Department of Financial Services’ (NYDFS) green light would allow its clients in New York to trade digital currencies through its SoFi Digital Assets subsidiary.

The firm, which is known for its student loan refinancing services, launched cryptocurrency trading in September. A SoFi spokesperson told The Block that the licensing process for all 50 states was underway the entire time that its crypto platform was being built, which took over a year. Currently, the spokesperson says, there are about 100,000 SoFi Invest accounts, with crypto being the number one overall holding. 

“After a rigorous application process, SoFi can now provide its members in the state of New York a trusted, secure platform to trade crypto,” the firm said in an announcement.

SoFi’s cryptocurrency offering sits alongside other investment vehicles including stocks and ETFs on its SoFi Invest application, released earlier this year. 

SoFi joins more than a dozen firms that have secured a BitLicense, including exchanges like Gemini and trading operations like Tagomi.