A massive barrier between regular banking and crypto just fell. Today, SoFi shares (SOFI) climbed 2.4% in pre-market trading on the news that SoFi is now the first nationally chartered U.S. bank to offer XRP (XRP-USD) directly to its 13.7 million customers. While many investors are celebrating this as a giant win for XRP, a serious catch has some users feeling like their digital assets are trapped in a cage.
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SoFi Creates a Massive Retail Gateway
The bank is opening the doors for millions of regular people to buy into the fourth-largest cryptocurrency for the first time. This move puts the token alongside heavyweights like Bitcoin (BTC-USD) and Ethereum (ETH-USD) on a regulated platform.
Ripple is already cheering the news. The company posted on social media that “more access to XRP with SoFi means more people can participate” in the growing digital economy. For many mainstream buyers who find crypto exchanges confusing, this is their first real chance to own a piece of the market.
Critics Slam the Banking App Trap
A strict rule that prevents users from actually moving their tokens is ruining the fun for many. A wave of frustration is hitting social media because SoFi does not allow users to withdraw their crypto to external wallets.
This means “any XRP bought on the platform stays locked in the bank’s custody” until the user decides to sell it back for dollars. Critics, including Dan Thurman, have labeled the setup “basically only a spot ETF” because it provides “price exposure without real XRP ownership” or the ability to use the coins for payments.
For now, tokens stay on the bank’s books and never touch a private wallet.
New XRP Demand Could Trigger a Massive Supply Squeeze
The new buying pressure from millions of bank customers could force the price higher even if the coins stay locked. The SoFi listing is a huge win for the XRP price. There are already 787 million tokens locked away in seven different spot ETFs.
Adding millions of new retail buyers creates a supply sink that could push the price up from its current level of $1.46. Institutional interest is also skyrocketing, with recent reports showing $120 million in new inflows into the asset. This creates a situation where more people want the coin while the available supply on exchanges keeps shrinking.
Withdrawal Options May Come Later
The bank has a track record of starting with strict rules before giving users more freedom over their coins. There is a good chance that this crypto prison will end soon. SoFi followed this exact same pattern with Solana. The bank launched Solana (SOL-USD) in November 2025 with no way to withdraw, yet they enabled external deposits and transfers by February.
Most experts expect XRP to follow this same path once the bank finishes its compliance work.
Until that happens, the XRP Ledger will lack activity from SoFi users, though the price could still see a major pump.
At the time of writing, XRP’s price is sitting at $1.4557.
