US-based digital lender SoFi Invest has acquired Hong Kong-based 8 Securities.
Following the acquisition of the mobile stock trading startup, it has been rebranded as SoFi Hong Kong, Tech in Asia reported. The move marks SoFi's first international foothold outside the U.S. The details of the deal were not disclosed.
SoFi Hong Kong will be the first and only brokerage service that delivers free stock trading of over 15,000 US and Hong Kong stocks as well as exchange-traded funds. It charges zero commissions, platform fees, and custodian fees.
“We underwent an extensive evaluation process when considering our first international market, and it was clear that Hong Kong, a financial capital of Asia, is ripe for innovation and a launching pad for further expansion in both product and geography,” said Anthony Noto, CEO at SoFi.
“Leveraging the learnings from the SoFi Invest platform in the US, SoFi can meet the needs of both experienced and novice investors alike in Hong Kong, all in support of our overall efforts to make headway on our mission to help people get their money right.”
8 Securities offered mobile-only investing, a robo-advisory service, social trading platform, and a zero-commission brokerage. In 2018, it raised a total of $70 million in funding with $25 million round from Japanese investment bank Nomura.
According to Mikaal Abdulla, the co-founder of 8 Securities, the deal is part of SoFi’s strategy to grow across Asia and Europe. SoFi started as a student loan financing and expanded aggressively over the years.
Earlier this month, SoFi agreed to buy financial service API and payment platform Galileo Financial Technologies for $1.2 billion worth of cash and stock deal.
“Together with Galileo, we will partner to build on our companies’ strengths to drive even greater financial technology innovation, making those products and services available to both current and future partners,” Noto said.