SoFi Launches First Consumer Tokenized Deposits

SoFi announced SoFi Earn (SOFIE), tokenized deposits stored on a blockchain that pay 4.4% interest and carry FDIC protection, making it the first consumer-level bank to offer them. The launch follows the collapse of the Clarity Act in Congress, which foundered over paying interest on stablecoins.

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SoFi, a federally chartered bank, is the first to bring interest-bearing, FDIC-protected tokenized deposits to consumers, positioning them as a bank-regulated alternative to stablecoins. The product targets crypto users who park cash in stablecoins and want yield, and lets them buy Bitcoin and pay service providers such as Mastercard that also hold SoFi accounts. It tests whether banks can capture blockchain benefits like 24/7 settlement inside the existing regulatory perimeter, especially after the Clarity Act failed over stablecoin interest. The main limitation is that transfers only work between parties who both bank with SoFi, which stablecoin advocates see as a serious constraint. Stablecoin issuers like Circle and Coinbase face a new competitive angle, while other banks may be pushed to follow.