SoFi Launches Tokenized Deposit That Earns 4.4% and Converts to a Stablecoin
SoFi has launched SoFi Earn, a new product featuring the SOFIE token, which represents a $1 deposit held at SoFi Bank. This initiative marks the first national bank-issued tokenized deposit for consumers, offering a 4.40% annual percentage yield while maintaining FDIC insurance. The product aims to bridge the gap between traditional banking protections and the utility of digital assets by allowing users to convert SOFIE tokens into SoFiUSD for crypto trading or blockchain-based transfers. By addressing the estimated $64 billion in idle stablecoin capital, SoFi seeks to provide a yield-bearing alternative to non-interest-earning stablecoins. This launch follows SoFi's recent expansion into digital assets, including the introduction of the SoFiUSD stablecoin on Ethereum and Solana. The move highlights a growing trend among regulated financial institutions to integrate blockchain rails into consumer banking ecosystems. Ultimately, this development represents a significant step in the institutional effort to fold regulated, interest-bearing deposits into the broader digital asset market.