SoFi Technologies has launched SoFi Earn, a tokenized bank deposit that pays a variable 4.4% annual percentage yield and can be converted into the company's dollar-pegged stablecoin for crypto purchases.
The product, called SOFIE, was introduced on Thursday with no minimum balance requirement, according to the company's announcement. Each SOFIE represents $1 deposited at SoFi Bank.
Stablecoin conversion and FDIC coverage
Customers can convert SOFIE one-for-one into SoFiUSD, SoFi Bank's stablecoin, to buy crypto in its app or send funds to supported external wallets.
SOFIE deposits qualify for Federal Deposit Insurance Corporation coverage up to $250,000 per depositor, per insured bank, for each account ownership category. SoFiUSD carries no FDIC insurance.
SoFi said SOFIE is rolling out to SoFi Crypto members through November. Members access the separate SOFIE deposit account through their SoFi Crypto account.
Regulatory context
The launch comes after the US Office of the Comptroller of the Currency issued a final rule on Wednesday covering payment stablecoin issuance and some custody activities. The source said the GENIUS Act framework is set to take effect in mid-January.
Cointelegraph reported in May that SoFi planned to introduce interest-bearing tokenized deposits when it made SoFiUSD available through its consumer banking app. At the time, the company said the feature would follow in the coming weeks.
