SoFi Launches Tokenized Bank Deposit Offering 4.4% Yield

What is SoFi Earn and How Does It Work?

Have you ever wondered if your digital dollars could earn solid interest while keeping the flexibility of crypto? SoFi is trying to answer that exact question. SoFi announced the launch of SoFi Earn, which trades under the ticker symbol SOFIE.

SoFi describes SOFIE as the very first consumer tokenized deposit issued by a national bank in the United States. Each SOFIE token directly represents $1 held on deposit at SoFi Bank. When you hold SOFIE, you can earn a 4.40% annual percentage yield (APY) on your funds.

Unlike standard stablecoins, these funds are backed by FDIC insurance up to applicable legal limits. This gives account holders the security of a regulated national bank while maintaining the digital convenience of crypto tokens.

Solving the Idle Digital Dollar Problem

SoFi designed this new product to fix a specific issue in the crypto world: idle cash. Many people keep stablecoins ready to trade, but those funds often sit in wallets without earning any interest or carrying deposit protection.

Federal Reserve research cited by SoFi estimates that roughly $64 billion—about 21% of the total stablecoin market—currently sits inactive in forgotten or unused wallets. SoFi wants to give users a way to keep that money earning until the moment they choose to spend it.

Too much money in the digital asset ecosystem is sitting idle. SoFi Earn combines the earning power and protections of a bank deposit with the speed and utility of digital assets.

That statement from SoFi CEO Anthony Noto highlights the core vision behind the project: merging high-yielding bank protection with digital speed.

Seamless Switching Between Cash and Crypto

Flexibility is key to how SOFIE operates. When members decide they want to use their funds, they can convert SOFIE one-to-one into SoFi USD, which is the bank's proprietary stablecoin.

Once converted to SoFi USD, users can buy cryptocurrency directly inside the SoFi app or transfer dollars across blockchain rails around the clock, 24/7.

It is important to note that while bank deposits are covered by FDIC insurance up to applicable limits, converting funds into cryptocurrencies or moving assets on-chain exposes users to normal digital asset market risks and price volatility.

SoFi's Rapid Expansion in Crypto

SOFIE is not an isolated experiment. It represents SoFi's fifth major crypto product launched in under a year, showing a rapid build-out of its digital assets ecosystem.

Here is a brief overview of how SoFi has expanded its digital currency services:

• Crypto Trading Comeback: SoFi returned to crypto trading in late 2025 after previously leaving the space, becoming the first nationally chartered U.S. bank to offer retail crypto trading with support for over 40 tokens.
• SoFi USD Stablecoin: The company launched SoFi USD as the first stablecoin issued directly by a U.S. national bank, operating across EthereumETH-2.66% and SolanaSOL-2.30%.
• Card Program Settlement: SoFi uses SoFi USD to settle its credit card network program via Mastercard.
• Institutional Services: SoFi previously launched business banking for digital assets and partnered with crypto exchange Kraken on stablecoin initiatives.

Bridging Banking and Digital Assets

By wrapping an interest-bearing bank deposit inside a digital token, SoFi is betting that consumers want bank-level security combined with the speed of Web3 technology.

As financial institutions continue exploring blockchain applications, products like SOFIE showcase how regulated banking can integrate with tokenized assets.

Please keep in mind that past performance of digital assets or financial institutions is not an indicator of future results.