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.
Asanat Analysis — Why it matters
SoFi's tokenized deposit product bridges traditional banking infrastructure with crypto rails, offering FDIC-insured yield through a stablecoin wrapper. The 4.40% APY is competitive with money market funds but signals institutional incumbents treating tokenization as a distribution mechanism rather than an alternative system. The 24/7 conversion feature addresses a key friction point: traditional deposits lock capital until banking hours, while this model maintains liquidity parity with crypto markets.
This move reflects a broader shift where legacy finance uses blockchain plumbing to compete on execution rather than philosophy. The FDIC guarantee is the critical detail—it commoditizes the yield while eliminating counterparty risk that plagued previous crypto yield products (Celsius, Voyager). For the stablecoin ecosystem, bank-issued tokenized deposits could drive USDC/USDT adoption among retail SoFi users who previously saw no on-ramp. However, it also signals regulators are comfortable with deposit tokenization only when backed by traditional banking licenses, potentially limiting peer-to-peer alternatives.