SoFi Bridges Bank Deposits and Onchain Finance With New Tokenized Dollar

SoFi Technologies has launched an interest-bearing tokenized bank deposit for retail customers, introducing a product that combines traditional deposit protections with the ability to move money into crypto markets and across blockchain networks.

Called SoFi Earn (SOFIE), the product represents US dollars held on deposit at SoFi Bank, a nationally chartered US bank. Each SOFIE represents $1 in deposits and earns a variable annual percentage yield (APY) of 4.40%, according to the company’s October 22 announcement. The funds are eligible for Federal Deposit Insurance Corporation (FDIC) coverage within applicable limits.

The launch gives SoFi customers a way to earn interest on digital dollars before converting them into SoFiUSD, the bank’s dollar-backed stablecoin. Customers can then use SoFiUSD to purchase cryptocurrencies through the SoFi app or transfer funds to supported external wallets over blockchain rails, including outside conventional banking hours.

SoFi says SOFIE is the first tokenized deposit issued by a US national bank directly for consumers. The product is rolling out to SoFi Crypto members through November.

Tokenized Deposits and Stablecoins Serve Different Roles

SOFIE’s main distinction is its legal and financial structure. Unlike a payment stablecoin, it represents a deposit liability of SoFi Bank. Eligible balances receive FDIC insurance according to the agency’s standard rules, including the applicable $250,000 limit per depositor, per insured bank, for each account ownership category.

The deposit continues earning interest until the customer converts it into SoFiUSD. At that point, the funds move from the deposit product into a stablecoin, which can be used for crypto purchases or blockchain-based transfers.

SoFiUSD does not carry FDIC deposit insurance. The distinction matters because the protection attached to SOFIE does not automatically extend to the stablecoin received after conversion.

The structure also separates the earning function from the transfer function. SOFIE provides an interest-bearing bank deposit, while SoFiUSD is designed to move dollar value across blockchain networks.

The 4.40% APY is variable and may change. Fees may reduce earnings, and the FDIC’s standard coverage limits and account-ownership rules apply.

SoFi Expands Its Digital Money Infrastructure

The launch is the latest step in SoFi’s expansion across consumer crypto services, stablecoins and blockchain-based payments.

The company introduced crypto trading for consumers in November 2025 and launched SoFiUSD in December 2025. It has since expanded its crypto offering to more than 40 assets and developed stablecoin settlement services for business and payments use cases.

In September, Unlock Blockchain reported on SoFi’s move to settle its card programme through SoFiUSD across Mastercard’s global payments network. The arrangement covers the bank’s debit and credit card programme, with annualised volume expected to exceed $25 billion.

That initiative uses a stablecoin for settlement, while SOFIE introduces a separate deposit product that can be converted into the stablecoin when customers are ready to move funds. Together, the products connect bank deposits, crypto trading and blockchain-based payments within the same financial ecosystem.

SoFi has also launched business banking services designed to let companies manage fiat deposits and digital assets through a regulated platform. SOFIE extends the bank’s digital-money strategy to individual customers rather than focusing solely on institutional or business use cases.

A New Model for Retail Digital Dollars

The launch comes as banks and financial institutions explore ways to represent deposits and other financial assets on blockchain networks. Tokenized deposits are one route, allowing commercial bank liabilities to be represented digitally while remaining deposits at the issuing institution.

This differs from stablecoins, which are generally structured as digital tokens backed by reserves and subject to their own legal and regulatory requirements. The distinction has become increasingly relevant as financial institutions develop products that combine conventional banking services with blockchain-based settlement.

For SoFi, SOFIE creates a route for customers to keep digital dollars in an interest-bearing bank deposit before converting them into a transferable stablecoin. Whether this model gains broader adoption will depend on customer uptake, the competitiveness of its variable yield and how easily the deposit-to-stablecoin conversion fits into everyday financial activity.

The broader development is the growing integration of bank deposits and blockchain infrastructure. Rather than replacing the deposit relationship with a stablecoin, SoFi is using a tokenized deposit as the starting point and a stablecoin as the means of moving funds onchain.