SoFi Technologies launched SoFi Earn on Thursday, a bank-issued, FDIC-insured tokenized deposit paying 4.40% APY that converts 1:1 into its SoFiUSD stablecoin.
Key Facts
SoFi Technologies launched SoFi Earn, a bank-issued tokenized deposit known as SOFIE, on Thursday, paying 4.40% APY with FDIC insurance up to applicable limits, the company said.
Each SOFIE represents $1 held at SoFi Bank and converts 1:1 into SoFiUSD, letting members earn interest on digital dollars before spending them on crypto.
SOFIE is SoFi's fifth crypto product launched in under a year, rolling out to SoFi Crypto members through November as the company builds out a digital-money ecosystem.
SoFi Technologies launched SoFi Earn on Thursday, a bank-issued tokenized deposit that pays 4.40% annual percentage yield (APY) and carries federal deposit insurance, the company said, letting members earn interest on digital dollars before they spend them on crypto.
The product targets a specific gap in the stablecoin market. SoFi cited Federal Reserve research estimating that roughly $64 billion, or 21.2% of stablecoins in circulation, sits idle in rarely used or forgotten wallets, earning nothing for holders.
Source: SoFi
Why Tokenized Deposits Can Pay Interest but Stablecoins Can't
Each SOFIE token represents $1 held on deposit at SoFi Bank, insured by the Federal Deposit Insurance Corporation (FDIC) up to applicable limits, SoFi said. Members can convert SOFIE 1:1 into SoFiUSD, the company's own stablecoin, to buy crypto or send funds over blockchain rails around the clock.
"Too much money in the digital asset ecosystem is sitting idle, leaving massive potential earnings on the table for millions of people," SoFi CEO Anthony Noto said. "We believe your money should keep working for you until the moment you need it."
The distinction between stablecoin and tokenized deposit matters because US law treats the two products differently. The GENIUS Act, signed in July 2025, bars payment-stablecoin issuers from paying interest or yield to holders, according to the Federal Reserve Bank of Richmond.
The FDIC’s proposed rule to implement the GENIUS Act would instead reaffirm that deposits in tokenized form remain ordinary bank deposits, FDIC Chairman Travis Hill said in April. That is why SOFIE can carry a variable rate while SoFiUSD cannot.
The US Office of the Comptroller of the Currency finalized its own GENIUS Act rule for stablecoin issuers this month, covering reserves, redemption, and custody ahead of the law's Jan. 18, 2027, start. Other firms are pursuing the inverse path: fintech Ramp applied this month for an OCC trust bank charter to custody crypto, a license that would let it hold digital assets without taking deposits at all.
Building a Bank-Backed Crypto Ecosystem
SOFIE is SoFi's fifth crypto product launched in less than a year, the company said. SoFi introduced consumer crypto trading in November 2025, then launched SoFiUSD a month later as a fully reserved digital dollar for round-the-clock settlement.
SoFi brought SoFiUSD into its consumer banking app in May, when it first outlined plans for tokenized deposits. It also launched Big Business Banking earlier in 2026, letting companies hold both fiat and digital assets on one regulated platform.
SOFIE is rolling out to SoFi Crypto members now through November, the company said.
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