SoFi Technologies, a nationally chartered U.S. bank, has expanded its cryptocurrency services to include XRP deposits, a move that brings the digital asset to its 13.7 million users but has sparked significant user backlash due to accompanying withdrawal restrictions. The announcement, made on April 21, 2026, allows customers to manage XRP alongside Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) within SoFi's regulated banking app.
The controversy stems from SoFi's implementation, which enables deposits but does not permit users to withdraw their XRP to external wallets. This creates what customers have described as a "crypto prison," echoing the limitations of spot exchange-traded funds (ETFs). The Block first reported on these restrictions in February 2025, documenting widespread frustration on social media and financial forums. Users are unable to transfer XRP to decentralized exchanges, hardware wallets, or DeFi applications, which conflicts with the core cryptocurrency principle of self-custody.
SoFi's cautious approach is likely driven by regulatory compliance and risk management. The company, regulated by the Office of the Comptroller of the Currency (OCC), must navigate complex state-by-state money transmitter licenses and federal securities regulations, particularly given the ongoing legal ambiguity surrounding XRP following the SEC's 2020 lawsuit against Ripple Labs. Financial technology experts suggest that restricting withdrawals simplifies compliance and reduces operational risks associated with blockchain transactions.
The news coincides with growing institutional interest in the XRP Ledger (XRPL). Real-world asset activity on XRPL has surged 875%, with total tokenized value nearing $2.5 billion. Major institutions including BlackRock, Franklin Templeton, and Mastercard have shown interest in the ledger. Ripple's CEO has pointed to a $13 trillion payments opportunity through its Treasury platform.
Market analysts are watching key price levels for XRP, which is consolidating above $1.40. Resistance is seen at $1.50–$1.55, with support at $1.30–$1.35. Some long-term projections suggest potential targets reaching $27 by 2030, assuming full banking adoption.
