SoFi Technologies (SOFI) is expanding into private markets, giving retail investors access to high-profile names like SpaceX, Epic Games, and even OpenAI.
While the announcement didn’t generate the same splash as Robinhood’s (HOOD) crypto push unveiled last week from the French Riviera, SoFi’s move marks a direct response to its rival’s headline-grabbing “stock tokens” initiative.
Robinhood’s offering lets EU investors buy blockchain-based contracts that track the value of public companies and even invest in private ones like OpenAI.
SoFi’s new approach is more traditional: expanding access to alternative investment funds managed by firms including Cashmere, Fundrise, and Liberty Street Advisors.
These funds include exposure to private companies across artificial intelligence, machine learning, space tech, healthcare, consumer products, e-commerce, and fintech.
“SoFi is expanding alternative investment opportunities for a new generation of investors,” CEO Anthony Noto said.
“Our unmatched selection across investment opportunities like private equity, venture, private credit, and real estate gives our members the ability to build truly diversified portfolios.”
The expansion builds on SoFi’s recent efforts to bring alternatives to a broader audience.
In the past year, the company has launched funds with KKR, ARK, Franklin Templeton, and Carlyle, and debuted a robo-advisor partnership with BlackRock that includes real estate and multi-strategy assets.
Not all private companies are on board
One potential flashpoint is OpenAI. Following Robinhood’s announcement, OpenAI publicly distanced itself from the tokens being offered in its name, calling them misleading.
“These ‘OpenAI tokens’ are not OpenAI equity,” the company said in a post on X. “We did not partner with Robinhood, were not involved in this, and do not endorse it.”
“Please be careful,” the company added.
Robinhood CEO Vlad Tenev responded with a post of his own, clarifying that while the tokens don’t represent equity, they provide a way for retail investors to gain exposure to private assets.
“Our giveaway plants a seed for something much bigger,” he wrote. “Since our announcement, we’ve been hearing from many private companies that are eager to join us in the tokenization revolution.”
OpenAI has not commented on SoFi’s latest product. SoFi stock is up 29.9% year-to-date.
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