SoFi bets on tokenized deposits

What happened

SoFi, a US digital bank with a national bank charter, announced a product called SoFi Earn (ticker SOFIE) on Thursday, 22 October. It is a tokenized deposit: each token represents one dollar held on deposit at SoFi Bank. According to Decrypt, holders earn interest and the funds are FDIC-insured up to the applicable limits. SoFi describes it as the first tokenized deposit for consumers issued by a US national bank, a claim Decrypt reports as the company's own. Ledger Insights says it is open to SoFi Crypto members and will roll out gradually through November 2026. In the UK, searches combining SoFi, crypto banking and stablecoins jumped on Google this week.

How it works

Members can convert SOFIE one to one into SoFiUSD, the dollar stablecoin that SoFi Bank began offering to its app users in May, as The Block reported at the time. From there, according to Decrypt, they can buy crypto in the SoFi app or move dollars over blockchain networks. Ledger Insights puts it simply: customers switch into SoFiUSD when they want to spend the money or move it on-chain. In other words, the money earns interest while it sits as a deposit and becomes a stablecoin when it needs to move.

What is a stablecoin, and what is a tokenized deposit?

If you are wondering what a stablecoin is: it is a crypto token designed to hold a steady value against a currency, usually the US dollar, backed by reserves held by its issuer. USDT and USDC are the best-known examples, although a stable value is not guaranteed. A tokenized deposit can look similar on a blockchain, but it is a bank deposit, a claim on the bank itself, which is why it can carry deposit insurance and pay interest. SoFi itself points out that many stablecoins pay no interest and have no deposit insurance, Decrypt reports.

Why the timing matters

The launch came a day after the US Office of the Comptroller of the Currency issued the first final rule under the GENIUS Act, the US law on payment stablecoins. As CoinDesk has reported, that law bars stablecoin issuers from paying interest to holders simply for holding a payment stablecoin, and banks and crypto firms disagree on how far rewards can go. SoFi also cited Federal Reserve research estimating that about $64 billion, roughly 21% of the stablecoin market, sits idle in forgotten or inactive wallets, according to Decrypt.

Why it matters for payments

Banks and crypto firms are now competing for the same digital dollars. Ledger Insights writes that SoFi's target is idle stablecoin balances held at crypto exchanges and in tokenized money market funds, rather than customers of other banks. For people who use stablecoins to pay or to move money, the menu is getting longer: tokens issued by crypto companies, stablecoins issued by banks, and bank deposits that can turn into stablecoins when they move.

What to watch next

Watch how quickly SoFi completes the rollout in November, whether other US banks follow with tokenized deposits of their own, and how the GENIUS Act rules still being written by other US agencies treat interest and rewards. Interest in the wider crypto and stablecoin market will also shape how many people actually move between these forms of digital dollars.

What it means for Odix Pay users

Odix Pay does not issue stablecoins or tokenized deposits. Where it is available in your country, you can top up your Odix Pay balance with USDT or USDC, or add USDT or USDC in the app through our licensed partner, which carries out the transaction. With Odix Earn, USDT and USDC can be put to work with a professional strategy partner; returns vary and are not guaranteed. Availability depends on your country, and fees are shown in the app. More stories in the Odix Pay newsroom.

Related guides — What are stablecoins? USDT and USDC explained · How to top up with USDT or USDC

Odix Pay is not a crypto wallet, does not provide any crypto custody service, and does not operate as a crypto buy/sell, Bitcoin/BTC or crypto investment platform.