SoFi, Payward agree to link banking network with Kraken infrastructure

Financial services app SoFi has teamed up with Payward, the parent company of cryptocurrency exchange Kraken. This partnership allows Payward to utilize SoFi’s "Big Business Banking" tools, join the SoFi Exchange Network (SEN), and list the SoFiUSD stablecoin on its multi-asset trading platform. SoFi will also utilize Payward’s Kraken Prime brokerage solution for additional digital asset liquidity, with qualified custody capabilities available as the relationship progresses.

Anthony Noto, SoFi’s CEO, stated that "the financial system should not shut down when markets stay open." The collaboration enables Payward clients to maintain market access through SoFi’s SEN, where they can settle U.S. dollar transactions 24/7, improving the money movement process by enabling transmissions and liquidity management on a continuous schedule.

David Ripley, co-CEO of Payward, remarked, "Money and markets are converging into a new financial paradigm, and the infrastructure underneath has to catch up." By joining forces with SoFi, Payward aims to close this gap, providing users with the ability to buy their first cryptoasset within the app they use for their paycheck. Ripley emphasized that the infrastructure behind this experience should seamlessly connect them to deep, liquid markets built to operate at scale.

PYMNTS CEO Karen Webster recently spoke with Kathleen Pierce-Gilmore, SoFi’s president, about the company's strategy. Pierce-Gilmore, a former Visa executive, explained their approach is based on the fact that banks, credit unions, and software platforms possess unique customer knowledge. SoFi can offer financial technology solutions to leverage this information.

She compared their model to Amazon Web Services (AWS), stating that SoFi serves as the "AWS of financial solutions," offering accounts, payments, lending, and money-movement infrastructure to various financial products.

Pierce-Gilmore's vision is to make these capabilities adaptable according to clients' needs, which can range from account and ledger capabilities, lending through Peach, money movement via ACH, FedNow and wires, to fraud and dispute management. By combining these ingredients, SoFi can create tailored financial solutions for each client.