SoFi Launches 4.4% APY Tokenized Deposit Product

Fintech firm SoFi has launched a tokenized deposit product, SOFIE, which offers a 4.40% annual percentage yield (APY) and can be converted to a stablecoin.

Each SOFIE token represents one U.S. dollar on deposit at SoFi Bank and is backed by FDIC insurance up to applicable limits. This structure aims to provide a yield-bearing alternative to traditional stablecoins, which typically do not offer interest or federal deposit insurance.

The product allows users to convert their SOFIE tokens into a stablecoin, providing a bridge between insured bank deposits and the broader digital asset ecosystem. The launch highlights the growing trend of traditional financial institutions creating tokenized representations of real-world assets.

SoFi’s move into tokenized deposits follows similar offerings from other financial entities, as the sector seeks to combine the security of regulated banking with the programmability of blockchain-based tokens.