SoFi Launches Tokenized Deposit Product SOFIE With 4.4% APY
Summary
- SoFi said it has launched 'SoFi Earn (SOFIE)', a tokenized deposit product for retail customers, offering an annual yield of 4.40%.
- The company said SoFi Earn is pegged one-to-one to $1 deposited at SoFi Bank, and that the underlying deposits are protected within FDIC coverage limits.
- SoFi said users can convert SoFi Earn into SoFi USD (SOFID) on a one-to-one basis and use it to buy cryptocurrencies or transfer funds to external wallets.
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SoFi has launched a tokenized deposit product for retail customers.
The U.S. fintech company said on October 22 it will roll out SoFi Earn, or SOFIE, a tokenized deposit product for individual customers. The product tokenizes dollars deposited at the bank and pays interest.
Each SOFIE token is pegged one-to-one to $1 deposited at SoFi Bank. The product launched with an annual percentage yield of 4.40%. The underlying deposits are protected within Federal Deposit Insurance Corp. coverage limits.
Users can convert SOFIE into SoFi USD, or SOFID, on a one-to-one basis when they want to buy cryptocurrencies or move funds on-chain. The converted SOFID can be used to buy crypto within the SoFi app or transferred to external wallets.
SoFi said SOFIE is the first tokenized deposit issued to retail customers by a federally chartered U.S. bank. The service is currently available to SoFi Crypto customers. The company plans to expand access in phases starting next month.
Chief Executive Officer Anthony Noto said SoFi aims to broaden customers' options for managing their money by combining the interest income and protections of bank deposits with the speed and utility of digital assets.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul