SoFi launches tokenized deposits paying 4.4%
SoFi introduced SoFi Earn, a tokenized deposit product called SOFIE that pays 4.4% and carries FDIC insurance. The company says it is the first consumer bank to offer tokenized deposits, which are blockchain-based dollars subject to different rules than stablecoins. SoFi's CEO expects crypto users to use the product for yield and to buy digital assets.
SoFi Earn, branded SOFIE, lets consumers hold blockchain-recorded dollar deposits that pay 4.4% and carry FDIC insurance. SoFi calls itself the first consumer bank to offer this; Citi has previously built similar tokenized deposits for institutional clients. Unlike stablecoins such as USDC, which sit outside the banking system and currently cannot earn interest or receive FDIC backing, these deposits remain within it.
Tokenized deposits move only between customers of the issuing bank, a constraint stablecoin supporters cite. SoFi's CEO said crypto users may use SOFIE for yield and to purchase Bitcoin or other digital assets; the company also offers a savings account and SoFiUSD stablecoin.
SoFi's move could give mainstream consumers a familiar, insured way to hold blockchain-based dollars, potentially increasing comfort with digital-asset infrastructure. Crypto traders and businesses that already use stablecoins may gain another yield option, while banks could face pressure to offer similar products. Because tokenized deposits work only within one bank's customer base, their near-term social reach may be limited; broader effects depend on adoption and how regulators treat interest-bearing digital dollars.