SoFi Technologies has launched SoFi Earn (SOFIE), a tokenized bank deposit in which each unit represents $1 held at SoFi Bank. The funds earn a variable 4.40% annual percentage yield with no minimum balance and receive federal deposit insurance of up to $250,000 per depositor, per insured bank and per account ownership category. Customers can convert SOFIE into the SoFiUSD stablecoin at a 1:1 ratio to purchase cryptocurrencies or make blockchain transfers around the clock. Unlike SoFiUSD, which pays no interest and is not FDIC-insured, SOFIE is structured as a deposit rather than a payment stablecoin as the GENIUS Act takes effect and prohibits payment stablecoin issuers from paying yield directly to holders. SoFi cites an estimated $64 billion, or 21.2% of the stablecoin market, sitting in rarely used wallets, and is rolling the product out to SoFi Crypto members through November.
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