SoFi Bank has launched “SoFi Earn,” a tokenized deposit that pays about 4.4% APY and includes FDIC coverage. The product issues tokens that represent a deposit and can be converted into stablecoins, with around-the-clock conversion highlighted by some outlets.
Several outlets frame the launch as an effort to combine yield and consumer-style deposit protection, pointing to features that distinguish it from traditional stablecoins. Cointelegraph and Decrypt emphasize the operational ability to convert funds to stablecoins 24/7 and describe each token as representing $1 on deposit.
Fortune places the launch within a broader policy and market debate about stablecoins versus tokenized deposits. The Block focuses on the crypto-oriented use case, describing the FDIC-insured tokenized deposit for crypto users and noting an option to convert to SoFiUSD.
