U.S. bank SoFi has made available an insured tokenized deposit that offers a 4.4% annual yield on funds waiting to be used to buy crypto and can be converted into a stablecoin.
According to a statement to The Block, SoFi Earn (SOFIE) is a new product that bridges bank deposits and crypto transactions. SoFi says a nationally chartered institution in the U.S. is offering tokenized deposits to retail customers for the first time.
Each SOFIE represents a $1 deposit held at SoFi Bank. The account, accessible through SoFi Crypto, offers a stated annual percentage yield (APY) of 4.4%. Users continue to earn interest until they convert their funds to use for crypto purchases.
One-to-one conversion from deposit to stablecoin
SOFIE can be converted into the bank’s stablecoin, SoFiUSD, at a 1:1 ratio. After the conversion, the funds can be used to buy crypto or transferred at any time of day to supported external wallets.
The two products have different coverage: Bank deposits held as SOFIE are covered by the U.S. Federal Deposit Insurance Corporation’s FDIC insurance, subject to applicable limits. SoFiUSD is not an FDIC-insured deposit. Therefore, the stated deposit protection does not continue after conversion to a stablecoin.
SoFi CEO Anthony Noto argues that significant amounts of money sit idle in the digital asset ecosystem, and says the product aims to combine the yield and protection features of bank deposits with the convenience of using digital assets. The bank plans to complete the rollout of SOFIE to crypto customers in November.
A new addition to SoFi’s crypto services
The bank launched retail crypto transactions in November 2025 and introduced SoFiUSD a month later. The stablecoin was added to the consumer app in May. According to the company, SoFi Crypto now supports trading in more than 40 cryptocurrencies.
In September, SoFi also began using SoFiUSD to settle card transactions on Mastercard’s global payment network. The new deposit product adds a step to these services, allowing customers to earn a return before their money moves into crypto.
Not investment advice.