US bank reveals $170M in crypto holdings: Q2 earnings report

San Fransico-based Sofi Financial institution revealed it holds $170 million in crypto on its steadiness sheet within the Q2 incomes report. The USA financial institution that serves over 6 million clients has seen a major improve in its crypto holdings in comparison with the final quarter.

The financial institution holds Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Cardano (ADA), Solana (SOL), Dogecoin (DOGE) and Ethereum Traditional (ETC). Out of the entire $170 million funding, the financial institution holds $82 million price of BTC adopted by $55 million price of ETH, DOGE took the third spot with $5 million and ADA is fourth with $4.5 million. An investor presentation additionally revealed that SoFi onboarded over 500,000 clients and now helps buying and selling for over 22 cryptocurrencies.

Sofi Financial institution not solely hodl crypto but additionally permit clients to purchase and promote varied cryptocurrencies however doesn’t provide any type of staking providers. The U.S. financial institution began providing crypto services to its customers in September 2019 in partnership with the Coinbase crypto trade.

Nevertheless, it wasn’t a financial institution when it first began providing crypto providers and solely obtained the license in February 2022, making it one of many few full banks to supply crypto providers.

Sofi Financial institution’s crypto providing nonetheless has not gone down properly with the Federal Reserve and lawmakers. In Nov 2022, a U.S. Senate committee questioned Sofi’s banking law compliance, whereas reminding it of the January 2024 deadline. Cointelegraph reached out to Sofi Financial institution to get readability on its compliance deadline and the way it could change its crypto holdings, however did not obtain a response at press time.

Associated: Bitcoin ETFs: Even worse for crypto than central exchanges

Crypto’s affiliation with mainstream banking was seen as an important step for mass adoption. Nevertheless, the downfall of a number of crypto giants adopted by the collapse of crypto-friendly banks has solid a shadow of doubt on the way forward for such associations.

The U.S. lawmakers rushed to comprise the harm and save clients’ funds however positively put a dent in such partnerships for the longer term as regulators blamed crypto for the financial institution’s collapse.

Journal: Deposit risk: What do crypto exchanges really do with your money?