SoFi Launches SOFIE Tokenized Deposit With 4.4% Annual Yield
The product features FDIC insurance and direct conversion to the bank's own stablecoin.
Markets Editor: Fabricio Marcilio 1 min read
SoFi Bank has launched a tokenized deposit called SOFIE. Each token unit is pegged to one dollar held at the institution and offers an annual yield of 4.40%.
A key feature of the product is the FDIC insurance coverage on deposited capital. This benefit distinguishes the offering from conventional stablecoins currently operating in the digital asset market.
Users have the option to convert SOFIE into the SoFiUSD stablecoin at a one-to-one ratio. This transaction allows capital to be used for purchasing crypto assets within the app or transferred via blockchain at any time.
The company justifies the product's creation by noting the volume of funds sitting idle in digital wallets without earning interest. The goal is to allow investors to maintain bank-level yields while preserving the agility needed for movements within the crypto ecosystem.
This initiative represents an expansion of the bank's financial infrastructure, which already supports the trading of various tokens. The move is part of a strategy to connect the traditional banking system with the speed of decentralized networks.
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