SoFi Introduces SOFIE: Tokenized Deposits with 4.4% Yield and FDIC Insurance

SoFi Technologies has unveiled SoFi Earn (SOFIE), a new tokenized bank deposit product that offers consumers the opportunity to earn interest on their digital dollars. Announced on Thursday, SOFIE allows users to earn a 4.4% annual percentage yield (APY) while providing the option to convert their deposits into SoFiUSD stablecoins for cryptocurrency purchases or blockchain transfers.

Each SOFIE token represents $1 held on deposit at SoFi Bank, and the funds are eligible for Federal Deposit Insurance Corporation (FDIC) coverage up to $250,000 per depositor, per insured bank. This structure differentiates SOFIE from conventional stablecoins, which typically do not provide interest to holders.

Customers can convert their SOFIE deposits into SoFiUSD at a 1:1 ratio, enabling them to trade cryptocurrencies through the SoFi app or transfer funds to supported external wallets. The 4.4% APY is variable and subject to change, and there is no minimum balance requirement for account holders.

This launch is part of SoFi's broader strategy to enhance its digital asset services for retail customers. It follows the introduction of SoFiUSD, the first stablecoin issued by a US national bank, which supports blockchain payments and settlement but does not pay interest or qualify for FDIC insurance.

SoFi's CEO, Anthony Noto, emphasized that SOFIE addresses the issue of idle capital in digital asset wallets, allowing users to earn interest until they are ready to utilize their funds. Federal Reserve research indicates that around $64 billion, or 21.2% of the stablecoin market, is held in inactive wallets.

With the launch of SOFIE, SoFi has now introduced five new crypto products in less than a year, further integrating regulated banking with blockchain-based payments and digital assets.