SoFi links banking network to Kraken's digital-asset infrastructure
DeFi & Yields ·
SoFi and Kraken parent Payward have agreed to connect their systems so institutional clients can settle US dollars around the clock and gain access to stablecoins.
The arrangement ties SoFi's banking settlement network directly into Payward's digital-asset infrastructure, according to an announcement from SoFi's investor relations page. The goal is to let institutional customers move dollars continuously rather than being limited to standard banking hours, while also opening a pathway into stablecoin holdings through the same integration.
The tie-up was also reported by The Block, which described the deal as linking SoFi's banking rails with the infrastructure Payward has built for Kraken, its crypto exchange business. Payward is the legal entity behind Kraken, which has grown from a Bitcoin-only trading venue founded in 2011 into a broader platform spanning spot crypto, tokenized equities, derivatives and banking-adjacent services, according to background compiled by Leviathan's Kraken atlas.
The mechanics of the partnership center on settlement speed and asset access. Traditional bank settlement typically runs on business-day schedules, creating gaps for institutions that need to move funds or rebalance positions outside those windows. By connecting SoFi's settlement network to Kraken's infrastructure, the two firms aim to close that gap, giving institutional clients a way to settle dollar transactions at any hour and to tap stablecoins as part of that same connected system.
The deal arrives as Kraken has been expanding its institutional and infrastructure footprint on multiple fronts, including a recently secured Fed master account and a pending acquisition of an embedded wallet unit from Magic Labs that has generated more than 60 million wallets. Kraken has also drawn outside capital interest, with Deutsche Börse taking a $200 million stake in the company at a $13.3 billion valuation, a figure described as 33% below its prior funding round.
What remains unspecified is the timeline for when institutional clients will be able to use the 24/7 settlement and stablecoin features, and whether the integration will extend beyond institutional accounts to retail users. Also unclear is how the SoFi-Payward link interacts with Kraken's other recent moves, including its new Fed master account, as both developments touch on how the exchange handles dollar-denominated flows.