SoFi has launched SOFIE, the first tokenized deposit from a US national bank for everyday customers, paying 4.4% a year on digital dollars. It matters because those dollars stay insured like a bank deposit, then turn into a stablecoin in seconds when a trader wants to buy crypto.
Key points:
- SoFi Earn, called SOFIE, pays 4.40% APY and each token equals $1 on deposit at SoFi Bank.
- The deposit is FDIC-insured up to the usual limits — normal stablecoins do not offer that cover.
- Holders can swap SOFIE 1-to-1 into the SoFiUSD stablecoin to buy crypto or move money 24/7.
The new product, announced on Thursday, is built for idle money. SoFi pointed to Federal Reserve research estimating that about $64 billion — roughly 21% of the stablecoin market — sits idle in forgotten or inactive wallets, earning nothing. SOFIE keeps paying interest until the moment the holder converts it, and chief executive Anthony Noto said too much money in digital assets is sitting idle and should keep working until it is needed.
Once converted, the money works like a stablecoin. Members convert SOFIE into SoFiUSD at a 1-to-1 rate inside SoFi Crypto, then use it to buy cryptocurrencies or send dollars to a supported external wallet over blockchain rails at any hour. One clear warning for users: the insurance covers the SOFIE deposit itself, not SoFiUSD after conversion — like other stablecoins, SoFiUSD is not an FDIC-insured deposit.
Read also: What Is a Stablecoin? A Simple Guide for Beginners
Why are banks racing into tokenized dollars?
This is SoFi's fifth crypto product in under a year. The bank returned to crypto trading in late 2025, saying it was the first nationally chartered US bank to offer it to consumers, and members can now trade more than 40 tokens. It then launched SoFiUSD, described as the first stablecoin issued by a US national bank, which now settles its whole card program over Mastercard's network. SoFi said it expects to finish rolling SOFIE out to its crypto members in November.
For traders, the test is simple: if insured, interest-paying dollars inside a crypto app prove easy to use, some of the cash now parked in non-paying stablecoins could move. That would put pressure on stablecoin issuers that pay no interest and offer no deposit insurance, and it shows big banks — not just crypto firms — now competing for the dollars traders keep ready to deploy.
Read also: OCC Finalizes GENIUS Stablecoin Rules — Jan 18, 2027 Start, Rewards Next?
— Crypto News Daily News Desk
This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: Decrypt, The Block
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