SoFi launches a digital dollar that pays 4.4% and carries deposit insurance
US bank SoFi launched SOFIE, a token that is a bank deposit: it pays 4.4% a year, is insured and swaps into a stablecoin in one step.
Event: October 22, 2026
Primary source: October 22, 2026
Published here: October 22, 2026 at 01:00 PM UTC
Read: 2 min
What happened
On 22 October SoFi launched SoFi Earn (SOFIE). Each token equals $1 on deposit at SoFi Bank, pays 4.40% APY and is FDIC-insured up to $250,000. SOFIE converts 1:1 into the bank's SoFiUSD stablecoin, which can buy crypto in the app or move money over blockchain at any hour.
Why it matters to you
Regular stablecoins like USDT and USDC pay holders no interest and are not deposits. SoFi shows another route: a digital dollar that behaves like a bank deposit. If it catches on, other banks may issue similar tokens.
What to check and watch
How fast SOFIE reaches all SoFi Crypto members (the bank says through November). Whether the rate changes: it is variable. And whether other big US banks follow.
What it is. A tokenized deposit is an ordinary bank deposit recorded as a token. SoFi stresses that SOFIE is not a payment stablecoin but a liability of the bank to the depositor. That is why FDIC insurance, the US deposit insurance fund, applies: up to $250,000 per depositor, per bank, for each account ownership category.
How it works. Money sits in SOFIE and earns interest. When needed, the member swaps SOFIE 1:1 into SoFiUSD, a stablecoin issued by the same bank. SoFiUSD can then buy crypto in the SoFi app or go to an external wallet. The 4.40% yield is as of 20 October, it is variable and can change, and there is no minimum balance.
Why the bank does it. SoFi cites Fed research estimating that about $64bn, or 21.2% of the stablecoin market, sits idle in forgotten or inactive wallets. The bank wants such money to earn until it is spent. It is SoFi's fifth crypto product in under a year: crypto trading since November 2025, the SoFiUSD stablecoin since December 2025 and business banking with digital assets.
Who it affects. For now only SoFi members in the US, with the rollout running through November. But it shows banks starting to compete with stablecoins for digital dollars. Keep in mind: crypto itself bought through SoFi is not insured and can lose value.
Confirmed facts
- On 22 October 2026 SoFi announced the launch of SoFi Earn (SOFIE), a tokenized deposit for consumers.[1][2]
- Each SOFIE represents $1 on deposit at SoFi Bank and earns 4.40% APY.[1][2]
- Funds in SOFIE are FDIC-insured up to $250,000 per depositor, per bank, for each account ownership category.[1]
- SOFIE converts 1:1 into the SoFiUSD stablecoin, which can buy crypto in the app or move money over blockchain 24/7.[1][2]
- SoFi says SOFIE is not a payment stablecoin; the rate is variable, current as of 20 October 2026, with no minimum balance.[1]
- SoFi cites a Fed estimate that about $64bn, or 21.2% of the stablecoin market, sits in rarely used or inactive wallets.[1]
- It is SoFi's fifth new crypto product in under a year, rolling out to SoFi Crypto members through November.[1]
- SoFi Crypto members can trade more than 40 cryptocurrencies.[1][2]
Implications
- ConfirmedSoFi members in the US get a way to hold digital dollars that earn interest and carry deposit insurance.
- Our readingOther US banks may issue similar tokenized deposits.
- Our readingStablecoins that pay no interest may find it harder to hold on to idle money.
Still unknown
- Whether SOFIE will be offered outside the US.
- Whether swapping SOFIE and SoFiUSD costs anything: the release only says fees may reduce earnings.
- How long the 4.40% rate lasts.
Who it affects
United States. SoFi members, stablecoin holders, anyone watching banks move into crypto
Sources
Cover: Freekonomist graphic, a symbolic image, not a photo of the event. This is a news explainer, not financial advice.
More stories
Turkey cuts rates to 36% as inflation dips below 30% for the first time since 2021
Turkey's central bank cut its key rate from 37% to 36% because inflation is slowing, but warned that expensive energy could still spoil the picture.
Barclays cuts about 5,000 jobs as technology and AI take over work
British bank Barclays reported higher profit and said it will shed around 5,000 jobs by the end of the year because technology and AI now do some of the work faster.
The world's biggest fund loses about $30bn in a quarter as bonds slide
Norway's sovereign wealth fund, the largest investor on the planet, ended the third quarter at -0.5%: rising rates hit its bonds while its stocks barely moved.
The market in 2 minutes, every morning
What happened overnight, what it means and what to watch today. Plain words, explained, and about your assets. One-click unsubscribe.