Morning Minute: SoFi Bank Launches Spot Crypto Trading

Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions expressed within are his own and do not necessarily reflect those of Decrypt. You can subscribe to the Morning Minute on Substack.

• Crypto majors rebounding after Tuesday's selloff; BTC at $105,000
• Lighter raises $68M at $1.5B valuation, led by Founder's Fund and Ribbit Capital
• Winklevoss Capital funds new Zcash DAT, buys $50M ZECC
• Circle beats Q3 earnings, eyes $ARC token for its stablecoin chain
• SoFi becomes the first major fintech to roll out spot crypto trading

Today marks a milestone: A major U.S. financial institution is launching crypto trading.

📌 What Happened

• SoFi announced it now allows crypto spot trading for U.S. consumers directly within its operations, without third-party integrations or digital wallet partners.
• Users can trade Bitcoin, Ethereum, Solana, and up to 30 other coins directly within the SoFi app, utilizing its bank charter.

Key Points

• Seamless integration: Crypto trading is embedded into SoFi's existing user interface alongside banking, investing, and debt solutions.
• Emphasis on bank-level confidence for users.
• Rolled out initially to U.S. consumers with state-by-state availability, with wallet custody and staking features expected soon.
• Smooth onboarding for existing SoFi account holders who can start trading by linking their accounts.
• Users can manage crypto alongside traditional finance tools like savings accounts, stock portfolios, and credit cards—all within the same platform.

🗣️What They’re Saying

“Today marks a pivotal moment when banking meets crypto in one app, on a trusted platform, and driven by our core mission to help our members get their money right. I believe blockchain technology will fundamentally change every way finance is done throughout the world…” — SoFi CEO Anthony Noto

SoFi also highlighted internal data stating:

• 60% of SoFi members owning crypto prefer buying and holding it with a licensed bank over crypto-specific exchanges.

The announcement reflects the growing demand for trusted, regulated players in the crypto space.

🧠 Why It Matters

SoFi integrating crypto with traditional financial products is a significant development.

Key Implications:

• Broadens access: Users no longer need crypto-specific exchanges—it becomes easily available in their primary financial dashboard.
• Legitimizes crypto: Regulated fintechs, like SoFi, treating cryptocurrencies akin to stocks enhances adoption, regulatory clarity, and consumer trust.
• Increases competition: Legacy crypto platforms face challenges as fintech apps like SoFi gain ground by offering convenience, security, and strong brand trust.

With the barriers to entry dissolving, the next wave of crypto holders is likely to emerge from traditional banking platforms. The pace of integration is accelerating.

🌎 Macro Crypto and Memes

Some highlights from the crypto markets:

• BTC +1% to $105,000; ETH even at $3,550; SOL -2% to $159
• Top movers include CC (+30%), SKY (+15%), DCR (+13%), ASTER (+10%)
• ETH whales reportedly purchased $350M+ during the recent dip, hinting at institutional interest
• Circle confirmed it is evaluating an $ARC token for its stablecoin chain
• Coinbase abandoned its planned $2B acquisition of stablecoin firm BVNK

🚚 What is happening in NFTs and Tokens?

Token Highlights:

• Lighter raised $68M at a $1.5B valuation with backing from Founders Fund and Ribbit Capital.
• Injective launched its native EVM mainnet, advancing its technical roadmap.
• Prophex introduced the “first perpetual prediction market” featuring dynamic odds and levered bets.

NFT Market Overview:

• NFT leaders: Punks hold steady at 35 ETH, Pudgy Penguins +2% at 6.04 ETH, BAYC +1% at 6.49 ETH.
• Hypurr’s NFT down -5% to 820 HYPE.
• Infinex Patrons saw a notable +7% move.