SoFi’s 4.4% Tokenized Deposit Converts to a Stablecoin
SoFi Launches Tokenized Deposit That Earns 4.4% and Converts to a Stablecoin
SoFi has introduced a tokenized deposit product called SOFIE, designed to represent customer dollars held at SoFi Bank while also functioning as an on-chain asset.
According to details provided, each SOFIE token represents $1 on deposit at SoFi Bank and earns 4.40% APY. The deposits backing the token are also described as carrying FDIC insurance, linking the product’s on-chain representation to a regulated banking framework.
The product is positioned as a hybrid between traditional bank deposits and stablecoins. In addition to accruing yield like a bank account, SOFIE is described as having the ability to convert to a stablecoin, connecting a familiar savings-style instrument with crypto-native rails.
The launch matters because it highlights a key difference between bank-backed tokenized deposits and ordinary stablecoins. While many stablecoins aim to maintain a $1 value, they typically do not provide the same combination of deposit insurance and interest paid directly to holders that a bank deposit can offer.
More broadly, the move reflects the financial industry’s continued experimentation with tokenization—using blockchain-based tokens to represent real-world financial liabilities, such as deposits. These structures are being explored as a way to make traditional money move with the speed and programmability of crypto systems, while keeping ties to regulated institutions.
