Key Takeaways
- SoFi launched SOFIE, a tokenized consumer bank deposit offering 4.40% APY.
- SoFi Earn carries FDIC insurance within applicable limits and converts 1:1 into SoFiUSD.
- The firm cited research estimating $64 billion in stablecoins sits in inactive or rarely used wallets.
SoFi Launches Tokenized Bank Deposits Paying 4.40% Interest
SoFi is putting a new spin on digital dollars, offering consumers a way to earn interest on money earmarked for cryptocurrency purchases without giving up traditional banking protections.
Announced Oct. 22, SoFi Earn (SOFIE) is billed as the first tokenized consumer deposit issued by a nationally chartered U.S. bank. The product offers a 4.40% annual percentage yield (APY), with Federal Deposit Insurance Corp. (FDIC) coverage up to applicable limits, bringing a familiar savings feature into an increasingly blockchain-connected financial system.
How SoFi’s Digital Deposit Works
Each SOFIE represents $1 held at SoFi Bank, functioning as a digital representation of money deposited with the institution rather than a conventional cryptocurrency. Customers can exchange their balances at a one-to-one rate for SoFiUSD, the company’s separate stablecoin, which supports round-the-clock transfers to compatible external wallets and purchases of more than 40 cryptocurrencies through the SoFi app.
For someone setting aside $5,000, the advertised rate would generate approximately $220 over 12 months, assuming the balance and interest rate remain unchanged. Unlike the underlying insured deposit, the token SoFiUSD serves as the payment and settlement instrument. The distinction separates money held to earn interest from money converted for movement across blockchain networks.
Billions in Stablecoins Sit Idle
SoFi CEO Anthony Noto sees an opportunity in digital assets that generate no returns while their owners wait to spend or invest them. Federal Reserve research cited in SoFi’s Thursday announcement estimates that $64 billion, representing 21.2% of the stablecoin market, remains in inactive, forgotten, or rarely used wallets.
The introduction follows several moves into digital finance. SoFi resumed consumer crypto trading in November 2025, introduced its bank-issued stablecoin in December, and subsequently launched Big Business Banking, a service connecting corporate deposits with traditional payments and digital assets.
The company also reports using its blockchain-based dollar for settlement across its Mastercard card program. Access to SOFIE is being introduced gradually through November, adding another option for customers navigating the increasingly blurred boundary between conventional banking and cryptocurrency.
