In brief – SoFi launched SoFi Earn (SOFIE), which it calls the first national bank-issued tokenized deposit for consumers. – The product targets idle digital dollars by offering interest and insurance stablecoins lack. – It’s SoFi’s fifth crypto product in under a year,…
tending a build-out that includes its crypto-trading return and the SoFiUSD stablecoin. 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.