According to Decrypt, SoFi has launched a tokenized deposit product that offers an annual percentage yield of 4.40%, represents $1 in deposited funds at SoFi Bank, and functions similarly to a stablecoin in its conversion capability.
The offering allows users to receive tokens—referred to as SOFIE tokens—that correspond one-to-one with dollar amounts held in the deposit. Each SOFIE token represents $1 on deposit at SoFi Bank. The product earns 4.40% APY. FDIC insurance applies to the underlying deposits, providing protection for the cash equivalent.
A key feature is the ability to convert the tokenized amount into a stablecoin form. This conversion aligns with how stablecoins typically operate, allowing users to move or use the value in a stablecoin-like manner. The yield and insurance together create a combination not generally available with ordinary stablecoins, since most stablecoins do not offer built-in FDIC-insured deposit yields.
The launch reflects SoFi’s expansion into tokenized financial products that integrate banking services with digital representation. The product combines interest earnings with regulatory deposit protection while offering functionality comparable to a stablecoin through conversion capability.
