SoFi Bank launched SoFi Earn, a tokenized deposit paying 4.40% APY with FDIC coverage, allowing users to convert funds to stablecoins 24/7.
SoFi Technologies launched SoFi Earn (SOFIE) on Thursday, offering a variable 4.4% annual percentage yield on tokenized bank deposits.
SOFIE has no minimum balance requirement, according to the company’s announcement. Each SOFIE represents $1 deposited at SoFi Bank. Customers can convert it one-for-one into SoFiUSD, the bank’s dollar-pegged stablecoin, to buy crypto in its app or send funds to supported external wallets.
SOFIE deposits qualify for Federal Deposit Insurance Corporation coverage up to $250,000 per depositor, per insured bank, for each account ownership category. SoFiUSD carries no FDIC insurance.
On Wednesday, the US Office of the Comptroller of the Currency issued a final rule covering payment stablecoin issuance and some custody activities, with the GENIUS Act framework taking effect in mid-January.
Cointelegraph reported in May that SoFi planned to introduce interest-bearing tokenized deposits when it made SoFiUSD available through its consumer banking app. At the time, the company said the feature would follow in the coming weeks.
The bank said SOFIE is rolling out to SoFi Crypto members through November. Members access the separate SOFIE deposit account through their SoFi Crypto account.
Subscribe to daily byte-sized crypto news from Cointelegraph
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
More on the subject
