SoFi Launches Tokenized Deposits With Variable 4.40% Yield and Limited Deposit Insurance
Key Facts
SoFi announced the launch of SoFi Earn, a tokenized bank deposit product with the ticker SOFIE and an advertised annual percentage yield of 4.40% at launch, combining funds held at the bank with the ability to convert them into a stablecoin. According to the company's announcement, each unit represents 1 dollar deposited at SoFi Bank and earns a return as a bank deposit. The company said in the product disclosures that the yield is "variable and subject to change at any time," meaning the advertised rate is subject to adjustment. The product has no minimum balance requirement, according to its terms page, allowing customers to hold deposits without a minimum amount to use the service. The disclosures also warn that fees may reduce earnings, a condition accompanying the advertised annual percentage yield.
The deposits represented by SOFIE are covered by the Federal Deposit Insurance Corporation up to $250,000, according to SoFi's announcement, subject to deposit insurance limits and conditions. That limit applies per depositor, per insured bank, for each account ownership category, with protection determined by those factors together. The SoFi USD stablecoin, which carries the ticker SOFID, is not a bank deposit, according to the company's disclosures on its availability in the app. SoFi said the coin "is not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation." Funds held in the tokenized deposit therefore have a different status from funds converted into the stablecoin, as deposit insurance protection does not extend to the latter.
The product allows customers to convert SOFIE into the stablecoin at a 1:1 ratio, according to the company's announcement, moving from holding a deposit to using the funds for cryptocurrency services. After conversion, customers can buy cryptocurrencies within the app or send funds over the blockchain around the clock, every day of the week. Chief Executive Anthony Noto said, according to Fortune, that the product targets cryptocurrency users who hold their cash in stablecoins and "are looking to earn a yield." On the regulatory backdrop for such products, a research note published by the Federal Reserve explains that the law prohibits a payment stablecoin issuer from paying interest directly. The note adds that the possibility of offering indirect rewards is not ruled out, within the legal distinction between interest paid directly by the issuer and other forms of rewards.
The launch of tokenized deposits follows SoFi's introduction of consumer cryptocurrency trading in November 2025, according to the timeline the company outlined in its announcement of the new product. SoFi described itself at the time as the first nationally chartered bank to offer the service to consumers, and the only bank in that category to do so. On April 2, 2026, the company announced the launch of its Corporate Banking platform, bringing traditional-currency and cryptocurrency banking services together on a regulated platform. That combination extended to services for businesses, alongside its consumer cryptocurrency trading service. SoFi's stablecoin was already available on the Ethereum and Solana networks before the tokenized deposit product launched, according to the company's announcement on its availability in the app.
The product launch was also preceded by a plan to move SoFi's entire card program to blockchain settlement, as the use of its stablecoin in payments expands. The company announced the move in a statement on enabling settlement over Mastercard's global payments network. It said the card program was expected to process more than $25 billion in transaction volume on an annualized basis using SoFi's stablecoin, an estimate of the program's expected volume. In its banking business, SoFi's total deposits rose by $5.3 billion during the second quarter of 2026 to $45.5 billion, according to its earnings announcement filed with the U.S. Securities and Exchange Commission. The company attributed the increase in that announcement to growth that included a strong rise in member deposits, before adding the tokenized deposit product to its services.
SoFi began rolling out the product to members of its cryptocurrency service, with availability set to expand through November, according to the launch announcement. The company's upcoming schedule includes a call to discuss third-quarter 2026 results on October 27, 2026. The call is scheduled to begin at 8 a.m. U.S. Eastern time, according to the earnings date announcement. On the regulatory front, the U.S. Office of the Comptroller of the Currency said the final rule implementing the GENIUS Act and the law itself take effect on January 18, 2027. That date falls after the phased rollout period SoFi outlined for its product, within the upcoming timetable for regulating payment stablecoins.