Payward partners with SoFi to boost stablecoin services
Payward's new partnership with SoFi introduces SoFiUSD, enhancing liquidity and 24/7 settlements for Canadian investors on Kraken's platform.
Ryan Mitchell 2 min read
Kraken’s new partnership with SoFi
Payward, the parent company of Kraken, has entered into a strategic partnership with SoFi to introduce SoFiUSD, a dollar-backed stablecoin, to Kraken’s platform. This development not only enhances offerings but also links Kraken to SoFi’s 24/7 dollar settlement infrastructure, positioning both companies for greater integration between digital assets and traditional finance.
SoFiUSD: A stablecoin built for modern finance
SoFiUSD, issued by SoFi Bank, is designed for payments and settlements, with its reserves backed by cash and short-term US Treasuries. This stablecoin will be made available to Kraken’s institutional clients, facilitating a smoother entry point into the world of cryptocurrency. As a result of this partnership, clients on the Kraken platform will benefit from real-time trading capabilities and access to stable liquidity.
Enhancing liquidity and trading services
Through this collaboration, SoFi aims to leverage Kraken Prime for digital asset trading. Kraken Prime is a service that employs smart order routing technology to assess price and market depth across various venues, thus optimally executing orders. This should provide SoFi with access to a diverse range of liquidity sources, rather than depending on a singular order book.
Broader trends in the crypto industry
The partnership follows a wider trend in which Payward and Kraken are actively seeking to establish relationships with traditional financial institutions. Just recently, Payward announced a collaboration with the London Stock Exchange Group to offer tokenized versions of UK equities through LSE 24, a new trading venue set to open in 2027. Additionally, Kraken has broadened its services to include exposure to the S&P 500 and tokenized equities.
Future implications and regulatory considerations
As Payward embarks on these expansions, the company is also reportedly preparing for an initial public offering (IPO), although plans have encountered delays. This ambition aligns with a growing trend of crypto firms seeking legitimacy and integration within more traditional financial frameworks, which is particularly relevant in the Canadian context given recent regulatory updates from the Canadian Securities Administrators (CSA) and the Ontario Securities Commission (OSC). Such partnerships signal a robust response to regulatory scrutiny while aiming to cater to a market that increasingly demands efficient and credible digital asset services.