SoFi said Thursday that it has launched SoFi Earn, or SOFIE, a yield-bearing tokenized deposit product offering a 4.4% APY with Federal Deposit Insurance Corporation coverage within applicable limits. The company described it as the first tokenized deposit service offered directly to retail customers by a U.S. nationally chartered bank.
According to the announcement, each unit of SOFIE corresponds to $1 of deposits held in a SoFi Bank account. Customers can access the product through the SoFi Crypto platform and convert SOFIE into the SoFiUSD stablecoin at a 1:1 ratio when needed. That stablecoin can then be used to purchase cryptocurrencies or transferred 24/7 to supported external wallets.
Deposits continue to earn interest before conversion and remain covered by FDIC insurance within applicable limits. SoFi said SoFiUSD itself, as a stablecoin, is not covered by FDIC insurance.
Built on SoFi’s earlier crypto and stablecoin rollout
The launch follows a series of crypto-related product moves by the company. In November 2025, SoFi opened cryptocurrency trading to consumers. In December of the same year, it launched the SoFiUSD stablecoin. In May 2026, it integrated SoFiUSD into its consumer banking app and at that time outlined follow-up plans for tokenized deposits, cross-border transfers and institutional integration.
SoFi Crypto currently supports trading in more than 40 cryptocurrencies. In September this year, the company also began working with Mastercard’s global payments network and started using SoFiUSD to settle card transactions. That card program is expected to exceed $25 billion in annual transaction volume. Earlier in the year, SoFi launched Big Business Banking, allowing companies to manage fiat and crypto assets on a single regulated platform.
Pressure point for banks
The 4.4% APY attached to SoFi Earn lands in the middle of a broader debate over interest-bearing digital dollar products. JPMorgan’s CFO had previously warned that yield-bearing stablecoins could create what he called a dangerous parallel banking system, drawing deposits out of the traditional banking sector.
Bank of America’s CEO has estimated that deposit outflows could reach $6 trillion if stablecoin rates remain above deposit rates. Research from the Bank for International Settlements, or BIS, said stablecoin growth slows by 20% to 50% if banks raise deposit rates by 0.01%.
Two-track structure
SoFi’s structure separates the insured bank deposit from the uninsured stablecoin. SOFIE is a bank deposit presented in tokenized form and covered by FDIC insurance within applicable limits. SoFiUSD is an uninsured stablecoin. The two are linked through 1:1 conversion, giving users a way to move between bank-protected balances and on-chain liquidity.
SoFi expects to complete the rollout to all crypto members in November. In the current Federal Reserve rate environment, the 4.4% APY is in line with returns available in standard money market accounts. For crypto users, that means funds can remain in an interest-bearing bank-protected form until they are needed for on-chain activity, at which point they can be converted into stablecoins.
What comes next
The report said that if SoFi is able to build meaningful scale in tokenized deposits, it would mark the first substantive extension of FDIC-insured coverage into a tokenized product. It also pointed to two issues to watch: how FDIC classifies insured funds tied to SOFIE, including whether they count toward the traditional deposit insurance pool, and whether other nationally chartered banks move to launch similar tokenized deposit products.