SoFi Technologies has launched an interest-bearing tokenized deposit for consumers, offering 4.40% annual percentage yield (APY) and federal deposit insurance through its nationally chartered bank.
Summary
- SoFi has launched SOFIE, a consumer tokenized deposit offering 4.40% APY through its nationally chartered bank.
- Each SOFIE represents $1 deposited at SoFi Bank, with FDIC insurance subject to standard coverage limits.
- Customers can convert SOFIE into SoFiUSD at a 1:1 ratio before buying cryptocurrencies or transferring funds.
- SoFi Earn is separate from the bank’s stablecoin, which does not carry the same deposit insurance protections.
- The product is rolling out through November, following SoFi’s expansion into cryptocurrency trading and blockchain settlement.
According to the company’s October 22 announcement, the product, called SoFi Earn (SOFIE), allows customers to earn interest on bank deposits represented digitally before converting their balances into SoFiUSD for cryptocurrency purchases or blockchain transfers.
Under the new arrangement, each SOFIE represents $1 held at SoFi Bank, N.A., which operates under a national banking charter and federal supervision.
The bank describes SOFIE as the first consumer tokenized deposit issued by a nationally chartered U.S. bank, distinguishing the product from conventional stablecoins.
Customers can access their SOFIE deposits through their SoFi Crypto accounts, where balances earn the advertised 4.40% APY while remaining available for conversion.
The interest rate is variable and can change at any time. SoFi’s disclosures identify October 20 as the rate’s effective reference date, with no minimum balance requirement, although fees may reduce earnings.
Deposits represented by SOFIE qualify for FDIC insurance under the standard rules, generally covering up to $250,000 per depositor, per insured bank, for each account ownership category.
The protection applies to eligible bank deposits, not to cryptocurrency investments purchased after converting the balance.
SoFi is introducing the product gradually, with availability expanding to eligible cryptocurrency customers through November.
SOFIE converts into SoFiUSD for crypto purchases
The company has designed the product around two separate forms of digital dollars. SOFIE represents an interest-bearing deposit, while SoFiUSD serves as a dollar-denominated stablecoin for transfers and payments.
When customers want to use their funds, they can convert SOFIE into SoFiUSD at a one-to-one ratio.
From there, SoFiUSD can fund cryptocurrency purchases inside the banking app or move to supported external wallets through blockchain networks operating around the clock.
SoFi illustrated the arrangement using a customer holding $5,000 for a future cryptocurrency purchase. The money earns deposit interest until the customer chooses to convert it for trading or transfer.
At an unchanged 4.40% APY, a $5,000 balance would earn approximately $220 over one year before fees, although actual returns depend on the applicable rate and holding period.
Chief Executive Officer Anthony Noto said the service addresses funds that remain unused while customers prepare to transact with digital assets.
“We believe your money should keep working for you until the moment you need it,” Noto said.
The distinction between the products is important under U.S. banking rules. SoFi’s disclosure explicitly identifies SOFIE as a deposit liability and states that the token is not a payment stablecoin.
Federal regulators have maintained that eligible tokenized deposits retain their existing treatment under deposit insurance rules. Payment stablecoins operate under a different framework and are not themselves FDIC-insured.
SoFi builds on its Mastercard stablecoin settlement business
The launch follows several developments in SoFi’s digital asset operations over the past year.
In November 2025, the bank introduced consumer cryptocurrency trading, allowing customers to buy, sell and hold digital assets alongside existing banking products.
Its cryptocurrency platform now supports more than 40 tokens, according to the company.
SoFi subsequently introduced SoFiUSD, bringing dollar-backed blockchain settlement into its payments infrastructure.
In September, crypto.news reported SoFi’s Mastercard settlement, which brought the bank-issued stablecoin into live card transactions across the payment network.
That arrangement covers SoFi’s $25 billion card program, allowing blockchain-based settlement while merchants continue receiving funds through established banking services.
The company had previously partnered with Kraken to connect its settlement network with institutional cryptocurrency trading services.
The agreement includes SoFiUSD distribution and access to Kraken Prime for additional trading liquidity.
Banks develop separate tokenized deposit systems
SoFi has introduced SOFIE while other financial institutions examine how blockchain infrastructure can support commercial bank deposits.
In April, the company launched Big Business Banking services, allowing corporate customers to manage traditional deposits, stablecoins and digital assets within one banking platform.
The Federal Deposit Insurance Corporation has separately proposed clarifying that deposits satisfying the statutory definition of a bank deposit retain their insurance treatment regardless of the technology used to record them.
SoFi describes SOFIE as its fifth cryptocurrency-related product launch in less than a year.
Its latest announcement reported 15.8 million members across the financial platform and more than 134 million global accounts served through SoFi Tech Solutions.
