SoFi unveils bank-issued tokenized deposit for yield-bearing crypto funds

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....