- SoFi has launched SoFi Earn (SOFIE), a bank-issued tokenized deposit that offers consumers 4.40% APY and FDIC insurance eligibility.
- Customers can convert SOFIE deposits into SoFiUSD stablecoins at a one-to-one ratio to purchase cryptocurrency or transfer funds over blockchain networks.
- The launch comes a day after the OCC finalized rules implementing the GENIUS Act, which restricts stablecoin issuers from paying yield, positioning tokenized deposits as an interest-bearing alternative that could help banks retain deposits.
SoFi has launched SoFi Earn (SOFIE), a bank-issued tokenized deposit for consumers. The new tokenized deposit will allow members to earn interest on their digital dollars while making them ready to use.
SoFi Earn allows customers to hold digital dollars in an interest-bearing, tokenized bank deposit that earns 4.40% APY and is eligible for FDIC insurance. When customers want to use those funds to purchase cryptocurrency or transfer money over a blockchain, they can convert their SOFIE deposits into SoFiUSD, SoFi’s stablecoin, at a one-to-one ratio. This allows customers to earn interest on their digital dollars until they’re ready to use them, combining the benefits of traditional fiat deposits with the flexibility of blockchain-based payments.
“Too much money in the digital asset ecosystem is sitting idle, leaving massive potential earnings on the table for millions of people,” said SoFi CEO Anthony Noto. “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 Earn will be rolled out to SoFi Crypto members now through November.
The launch comes just hours after the Office of the Comptroller of the Currency (OCC) finalized rules implementing the GENIUS Act’s prohibition on stablecoin issuers paying yield to holders. SoFi’s new tokenized deposit offers an alternative by positioning interest-bearing bank deposits as a complement to stablecoins without being subject to the same restrictions.
The GENIUS Act takes effect January 18, 2027 and has been criticized for leaving out details regarding interest payments from third-party reward programs. The law prohibits stablecoin issuers from paying interest or yield to holders solely for holding a payment stablecoin, while leaving room for debate over rewards offered by exchanges and other intermediaries. Tokenized bank deposits, meanwhile, fall outside the GENIUS Act’s definition of payment stablecoins, allowing banks such as SoFi to offer interest-bearing digital dollars under existing banking regulations.
Today’s launch of SOFIE is SoFi’s fifth new crypto offering in less than a year. The company has been building out its digital money ecosystem by launching crypto trading for consumers, SoFiUSD, and Big Business Banking, a platform that gives companies a single regulated platform to manage both fiat and digital assets.
The launch raises an interesting question about the future of digital dollars: If consumers can earn interest on tokenized deposits and easily convert them into stablecoins when needed, there is limited incentive for them to hold non-interest-bearing stablecoins. SoFi’s move motivates consumers to use its bank to store their tokenized deposits.
Traditional banks, especially those concerned about losing deposits to digital assets, can take a lesson from SoFi’s launch. The move suggests that banks don’t have to choose between traditional deposits and blockchain-based payments. Connecting interest-bearing deposits with stablecoin functionality allows banks to offer consumers the best of both worlds; they get to earn interest on their money while maintaining the flexibility to transact using blockchain-based payments.