SoFi unveils bank-issued tokenized deposit for yield-bearing crypto funds
The new product offers a 4.4% variable annual percentage yield on tokenized bank deposits.
Quick Look
- SoFi Technologies has launched SoFi Earn (SOFIE), a tokenized deposit product offering a 4.4% variable APY.
- Each SOFIE token represents $1 deposited at SoFi Bank and is FDIC-insured, distinct from the company's non-insured SoFiUSD stablecoin.
AI-generated summary
Why It Matters
SoFi previously announced plans to introduce interest-bearing tokenized deposits in May. The US Office of the Comptroller of the Currency recently issued new rules regarding payment stablecoin issuance.
SoFi Technologies launched SoFi Earn (SOFIE) on Thursday, offering a variable 4.4% annual percentage yield on tokenized bank deposits.
SOFIE has no minimum balance requirement, according to the company’s announcement. Each SOFIE represents $1 deposited at SoFi Bank. Customers can convert it one-for-one into SoFiUSD, the bank’s dollar-pegged stablecoin, to buy crypto in its app or send funds to supported external wallets.
SOFIE deposits qualify for Federal Deposit Insurance Corporation coverage up to $250,000 per depositor, per insured bank, for each account ownership category. SoFiUSD carries no FDIC insurance.
On Wednesday, the US Office of the Comptroller of the Currency issued a final rule covering payment stablecoin issuance and some custody activities, with the GENIUS Act framework taking effect in mid-January.
Cointelegraph reported in May that SoFi planned to introduce interest-bearing tokenized deposits when it made SoFiUSD available through its consumer banking app. At the time, the company said the feature would follow in the coming weeks.
The bank said SOFIE is rolling out to SoFi Crypto members through November. Members access the separate SOFIE deposit account through their SoFi Crypto account.
Open Questions
- How will the rollout progress beyond November?
