SoFi Launches FDIC-Insured Tokenized Deposit Product

American fintech company SoFi Technologies has launched SoFi Earn (SOFIE), a tokenized deposit product for individual customers with an annual yield of 4.4%, insured by the Federal Deposit Insurance Corporation (FDIC) within applicable limits. SoFi states that this is the first time a national bank in the U.S. has offered a tokenized deposit product to individual customers. Each SOFIE corresponds to a $1 deposit held at SoFi Bank, and users can access this product through SoFi Crypto, converting SOFIE to SoFiUSD stablecoin at a 1:1 ratio for purchasing cryptocurrencies or transferring to supported external wallets. Deposits continue to earn interest before conversion, but SoFiUSD itself is not a deposit insured by the FDIC. SoFi expects to roll out this product to crypto business users by November.

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