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BackSoFi Launches Tokenized Deposit That Earns 4.4% and Converts to a Stablecoin
SoFi Launches Tokenized Deposit That Earns 4.4% and Converts to a Stablecoin
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Decrypt6 hours agoCrypto2 min read

SoFi Launches Tokenized Deposit That Earns 4.4% and Converts to a Stablecoin

The new product allows customers to earn 4.40% APY on tokenized deposits while maintaining blockchain utility.

Quick Look

  • SoFi has introduced SOFIE, a bank-issued tokenized deposit that offers 4.40% APY and FDIC insurance.
  • The product aims to provide interest-earning potential for digital assets that would otherwise sit idle in crypto wallets.

AI-generated summary

Why It Matters

SoFi recently returned to crypto trading in late 2025 and previously launched SoFiUSD, a stablecoin used for its card program.

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SoFi is giving its customers a way to earn bank-grade interest on digital dollars without giving up the speed of crypto, launching what it calls the first national bank-issued tokenized deposit for consumers.

Announced Thursday, the product, SoFi Earn, trades under the ticker SOFIE, with each token representing $1 held on deposit at SoFi Bank. Holders earn 4.40% annual percentage yield, and the funds are FDIC-insured up to applicable limits, a key distinction from ordinary stablecoins.

When members want to deploy the money, they can convert SOFIE one-to-one into SoFiUSD, the bank’s stablecoin, and then use it to buy crypto in the SoFi app or move dollars over blockchain rails around the clock.

The pitch targets a specific gap. Stablecoins have become a popular way to park digital dollars, but many pay no interest and carry no deposit insurance. SoFi cited Federal Reserve research estimating that roughly $64 billion, or about 21% of the stablecoin market, sits idle in forgotten or inactive wallets. The company is pitching SOFIE as a way to keep that money earning until the moment it’s spent.

“Too much money in the digital asset ecosystem is sitting idle,” CEO Anthony Noto said in a statement, arguing the product combines “the earning power and protections of a bank deposit with the speed and utility of digital assets.”

SoFi Earn is the fifth crypto product the company has rolled out in under a year, part of an aggressive build-out of its digital-money ecosystem.

SoFi returned to crypto trading in late 2025 after exiting the business years earlier, becoming the first nationally chartered U.S. bank to offer it to consumers, and members can now trade more than 40 tokens.

The company followed that with SoFiUSD, the first stablecoin issued by a U.S. national bank, launched across Ethereum and Solana and now used to settle SoFi’s entire card program over Mastercard’s network.

The move pushes SoFi deeper into a space where banks and fintech firms are racing to fold blockchain-based dollars into regulated products, following its earlier launch of business banking for digital assets and a stablecoin tie-up involving cryptocurrency exchange Kraken.

By wrapping a yield-bearing, insured deposit in a token that moves like a stablecoin, SoFi is betting consumers want both at once.

Open Questions

  • How will regulators respond to bank-issued tokenized deposits?
  • What is the adoption rate among existing SoFi members?

Related Topics

This article was originally published by Decrypt.

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