USD
SoFi Launches SOFIE Tokenized Deposit With 4.4% APY and FDIC Insurance
Customers can convert deposits 1:1 into SoFiUSD for crypto purchases and transfers
TL;DR
- SoFi launched SOFIE, an interest-bearing tokenized bank deposit paying 4.4% APY with FDIC insurance.
- SOFIE can be converted 1:1 into SoFiUSD for crypto purchases or transfers to supported external wallets.
- SoFi expects to complete the SOFIE rollout to its crypto members in November.
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SoFi Technologies has launched SoFi Earn, or SOFIE, an interest-bearing tokenized deposit offering a 4.4% annual percentage yield and Federal Deposit Insurance Corporation coverage within applicable limits. SoFi said the product marks the first time a U.S. national bank has offered tokenized deposits directly to individual customers.
Each SOFIE represents $1 held on deposit at SoFi Bank and remains interest-bearing until a customer converts it. Members access SOFIE through SoFi Crypto and can exchange it at a 1:1 rate for SoFiUSD, the bank’s stablecoin. The converted funds can then be used to buy cryptocurrencies through the SoFi app or transferred to a supported external wallet around the clock.
The insurance distinction applies to the bank deposit rather than the stablecoin. SOFIE qualifies for FDIC insurance within applicable limits while held as a deposit, but SoFiUSD is not an FDIC-insured deposit. SoFi expects to finish rolling out SOFIE to its crypto members in November.
SoFi CEO Anthony Noto said the product was designed to keep funds earning interest while they remain inside the digital asset ecosystem.
“Too much money in the digital asset ecosystem is sitting idle, leaving massive potential earnings on the table for millions of people,” Noto said.
“We believe your money should keep working for you until the moment you need it. SoFi Earn combines the earning power and protections of a bank deposit with the speed and utility of digital assets, giving people more value, flexibility, and control over their money.”
SoFi Targets Idle Stablecoin Balances
SoFi cited Federal Reserve research estimating that roughly $64 billion, or about 21% of the stablecoin market, sits in forgotten or inactive wallets. The company positioned SOFIE as an alternative that allows funds to continue earning interest before users convert them for crypto purchases or blockchain-based transfers.
The launch is SoFi’s fifth crypto product rolled out in under a year. The company returned to consumer crypto trading in late 2025 after previously exiting the business, becoming the first nationally chartered U.S. bank to offer the service to consumers. SoFi Crypto now supports trading in more than 40 cryptocurrencies.
SoFi introduced consumer crypto trading in November 2025 and launched SoFiUSD a month later. SoFiUSD was launched across Ethereum and Solana and was described as the first stablecoin issued by a U.S. national bank. SoFi later brought the stablecoin into its consumer app in May, when the company also outlined plans covering tokenized deposits, cross-border transfers and additional institutional integrations.
SoFi expanded the stablecoin’s payments role again in September, when it began using SoFiUSD to settle card transactions over Mastercard’s global payments network. SoFi said the card program was expected to exceed $25 billion in annualized volume. SoFiUSD is now used to settle the company’s entire card program over the Mastercard network.
The company has also launched Big Business Banking, allowing companies to combine fiat and crypto services on a single regulated platform. Its broader digital asset expansion has included business banking for digital assets and a stablecoin arrangement involving cryptocurrency exchange Kraken.
This article has been refined and enhanced by ChatGPT.
