SoFi Launches 4.4% Tokenized Deposits With FDIC Insurance…
By Abdelaziz Fathi
AI summary of the source article
SoFi Technologies has launched SoFi Earn, an FDIC-insured tokenized deposit offering a variable 4.40% annual percentage yield. Deposited funds can be converted at a 1:1 ratio into the bank's dollar-pegged stablecoin, SoFiUSD.
Why it matters
The structure could appeal to cryptocurrency investors who keep cash available for trading opportunities but would otherwise earn little or no return on idle stablecoin balances.
Key facts
- SoFi Earn (SOFIE) offers a variable 4.40% APY with FDIC insurance coverage up to $250,000 per depositor.
- SOFIE deposits can be converted at a 1:1 ratio into SoFiUSD, a payment stablecoin that does not have FDIC protection.
- SoFi described the product as the first consumer tokenized deposit offered by a nationally chartered U.S. bank.
Source excerpt · FinanceFeeds
SoFi Technologies (NASDAQ: SOFI) has launched an interest-bearing tokenized deposit offering a 4.40% annual percentage yield and federal deposit insurance, introducing a bank-backed alternative to stablecoins that allows customers to earn interest before moving funds into cryptocurrency markets. The product, called SoFi Earn (SOFIE), represents dollar deposits held at SoFi Bank. Each SOFIE unit co…