SoFi launches tokenized bank deposit offering 4.40% APY

SoFi Technologies has launched an interest-bearing tokenized deposit for consumers, offering 4.40% annual percentage yield (APY) and federal deposit insurance through its nationally chartered bank. Summary SoFi has launched SOFIE, a consumer tokenized deposit offering 4.40% APY through its nationally chartered bank. Each SOFIE represents $1 deposited at SoFi Bank, with FDIC insurance subject to standard coverage limits. Customers can convert SOFIE into SoFiUSD at a 1:1 ratio before buying cryptocurrencies or transferring funds. SoFi Earn is separate from the bank’s stablecoin, which does not carry the same deposit insurance protections. The product is rolling out through November, following SoFi’s expansion into cryptocurrency trading and blockchain settlement. According to the company’s October 22 announcement, the product, called SoFi Earn (SOFIE), allows customers to earn interest on bank deposits represented digitally before converting their balances into SoFiUSD for cryptocurrency purchases or blockchain transfers. Under the new arrangement, each SOFIE represents $1 held at SoFi Bank, N.A., which operates under a national banking charter and federal supervision. The bank descr...