SoFi launches tokenized bank deposits offering 4.4% yield and FDIC insurance

SoFi Technologies has launched an interest bearing tokenized deposit product offering a 4.40% annual percentage yield and federal deposit insurance, expanding its digital asset services for retail customers. The new product, called SoFi Earn (SOFIE), was announced Thursday and allows customers to earn interest on digital dollars before converting them into stablecoins for crypto purchases or blockchain transfers. Each SOFIE represents $1 held on deposit at SoFi Bank, with funds eligible for Federal Deposit Insurance Corporation coverage of up to $250,000 per depositor, per insured bank, for each account ownership category. Unlike conventional stablecoins, which generally do not pay interest directly to holders, SOFIE is structured as a tokenized bank deposit rather than a payment stablecoin. Customers can convert SOFIE into the bank’s SoFiUSD stablecoin at a 1:1 ratio, allowing them to purchase cryptocurrencies through the SoFi app or transfer funds to supported external wallets around the clock. The 4.40% APY is variable and subject to change, according to SoFi, with no minimum balance requirement. SoFi expands stablecoin and crypto services The launch follows SoFi’s introduction ...