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- SoFi launched the SOFIE product on October 22 to earn interest on tokenized deposits.
- The offering provides a variable annual percentage yield of 4.40 percent for members.
- Converted SoFiUSD stablecoins operate separately without Federal Deposit Insurance Corporation protection.
SoFi launched SoFi Earn (SOFIE) on Oct. 22, letting customers earn interest on tokenized bank deposits before converting them into SoFiUSD for crypto purchases. The product offers a variable 4.40% annual percentage yield (APY), with access rolling out to SoFi Crypto members through November.
SoFi Connects Interest-Earning Deposits With Crypto Purchases
Each SOFIE represents $1 deposited at SoFi Bank. Members access the deposit through their SoFi Crypto account, although SOFIE is a separate banking product.
Customers can convert SOFIE one-for-one into SoFiUSD, then buy cryptocurrency in the app or transfer the stablecoin to supported external wallets. SoFi said those blockchain transfers can operate around the clock.
The deposit’s APY and Federal Deposit Insurance Corporation (FDIC) eligibility apply to SOFIE, while SoFiUSD is a separate, uninsured stablecoin. Converting between the two therefore changes both how the funds can be used, and the protections attached to them.
SoFi Sets Variable Rate Without Minimum Balance
The 4.40% APY was current as of Oct. 20 and can change at any time. SoFi disclosed no minimum balance requirement and said fees may reduce earnings.
At an unchanged 4.40% APY, $5,000 deposited for a full year would earn approximately $220 before fees or taxes. Withdrawing funds earlier or a change in the advertised rate would alter that result.
SOFIE represents a deposit liability of SoFi Bank rather than a payment stablecoin. The product allows customers to hold interest-earning bank funds while waiting to make a crypto purchase, with conversion into SoFiUSD providing the next step for trading or external transfers.
FDIC Limits Apply Across Deposits at the Same Bank
FDIC coverage generally extends to $250,000 per depositor, per insured bank, for each account ownership category. SOFIE balances count alongside other SoFi Bank deposits held in the same category.
Opening another deposit account does not automatically increase coverage. Separate ownership categories may qualify for additional protection when their requirements are met. The relevant insurance calculation therefore depends on account ownership and combined balances, rather than whether a token represents a deposit.
