SoFi opens banking rails to Kraken in U.S. partnership

The companies announced a partnership in which SoFi will connect its banking infrastructure to Kraken’s U.S. platform, giving Kraken direct access to SoFi’s deposit and payment systems.

SoFi will provide services that support transfers, deposits and payment clearing for Kraken customers, enabling funds to move between Kraken accounts and the U.S. banking system using SoFi’s infrastructure. The collaboration covers bank account connectivity and payment settlement functions exchanges use to accept and disburse U.S. dollars.

According to company statements, the deal will streamline deposits and withdrawals of U.S. dollars for Kraken users. Kraken has faced intermittent limits on banking access in some markets; the partnership creates a direct route for fiat transfers for U.S. customers. SoFi will supply the payment and settlement services and will not act as a financial backer of Kraken’s trading operations.

Technical integration will link Kraken’s deposit and withdrawal flows to SoFi’s account and payment APIs, reducing intermediaries and shortening settlement times, according to the companies. The agreement does not change custody arrangements for digital assets; Kraken will continue to hold and manage assets under its existing custody framework.

Regulatory compliance, identity verification and anti-money-laundering controls will remain in place for customers moving fiat between Kraken and the banking system, with each firm responsible for meeting applicable rules.

SoFi Technologies operates an online bank and offers lending, investing and payments products, holding deposit insurance through its bank charter. Kraken is a global cryptocurrency exchange that provides trading, staking and custody services to retail and institutional customers. U.S. crypto exchanges commonly partner with banks and fintechs to connect users to the traditional banking system because exchanges generally do not hold broad deposit-taking bank charters.