SoFi launches tokenized deposits with 4.4% APY

SoFi Technologies launched SoFi Earn, known as SOFIE, through SoFi Bank. The tokenized deposit pays a variable 4.4% annual percentage yield and has no minimum balance requirement, according to the company.

Each SOFIE token represents $1 deposited with SoFi Bank. Customers can convert SOFIE to SoFiUSD on a one-to-one basis to buy cryptocurrency through SoFi’s app or send funds to supported external wallets. The conversion is available 24 hours a day, according to the company.

The product is rolling out to SoFi Crypto members through November. Customers access a separate SOFIE deposit account through their SoFi Crypto accounts.

SOFIE deposits qualify for Federal Deposit Insurance Corporation coverage of up to $250,000 per depositor, per insured bank, for each account ownership category. SoFiUSD does not have FDIC insurance.

The launch follows SoFi’s introduction of SoFiUSD through its consumer banking app. SoFi had previously announced plans to offer interest-bearing tokenized deposits after making the dollar-pegged stablecoin available to customers.

On Wednesday, the U.S. Office of the Comptroller of the Currency issued a final rule covering payment stablecoin issuance and certain custody activities. The rule is tied to the framework established by the GENIUS Act, which is scheduled to take effect in mid-January.