Today SoFi Technologies unveiled SoFi Earn (SOFIE), a tokenized deposit at SoFi Bank with FDIC coverage that pays a variable 4.4%. When a customer wants to spend the money or move it on chain, they convert it into the bank’s stablecoin, SoFi USD. It is rolling out to SoFi Crypto members through November.
What’s notable is that SoFi is paying more than the Fed funds rate. The 4.4% matches the promotional rate on its high yield savings account, but that boost over the standing 3.3% rate requires a new account. SOFIE pays it to any SoFi Crypto member, with no expiry, although the rate is variable. That likely reflects competition from idle stablecoin balances at Coinbase and from tokenized money market funds rather than from other banks. For SoFi the math still works, given the double digit yields on its personal loans.
“Too much money in the digital asset ecosystem is sitting idle, leaving massive potential earnings on the table for millions of people,” said Anthony Noto, CEO of SoFi. “We believe your money should keep working for you until the moment you need it.”
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