SoFi Launches Tokenized Deposit Yield-Bearing Crypto Fund

SoFi Technologies launched SoFi Earn on Thursday, introducing a variable 4.4% annual percentage yield on tokenized bank deposits, according to the company's announcement.

SoFi Earn Structure and Yield

Each SoFi Earn token represents $1 deposited at SoFi Bank. The product features no minimum balance requirement. Customers can convert their deposits one-for-one into SoFiUSD, the bank's dollar-pegged stablecoin, to purchase crypto within the application or transfer funds to supported external wallets.

Deposits in the new product qualify for Federal Deposit Insurance Corporation coverage up to $250,000 per depositor, per insured bank, for each account ownership category. However, SoFiUSD itself carries no FDIC insurance.

Rollout and Regulatory Context

The bank stated that the feature is rolling out to SoFi Crypto members through November, with members accessing the separate deposit account through their SoFi Crypto account. The launch follows the US Office of the Comptroller of the Currency's final rule covering payment stablecoin issuance and certain custody activities, alongside the GENIUS Act framework set to take effect in mid-January.

Key facts

• SoFi Bank launched SoFi Earn with a variable 4.4% annual percentage yield.
• Each SoFi Earn token represents $1 deposited at SoFi Bank.
• Deposits qualify for FDIC coverage up to $250,000 per depositor.
• Users can convert funds one-for-one into SoFiUSD to buy crypto or send to external wallets.