SoFi Technologies launched a tokenized deposit product on Thursday that allows customers to earn interest on cash set aside for cryptocurrency purchases. The new offering pays 4.4% annual interest through a SoFi Earn account, with eligible deposits covered by Federal Deposit Insurance Corporation (FDIC) protection up to USD 250,000 per depositor if a bank fails.
The product gives crypto investors an alternative to holding funds in stablecoins while waiting to make trades. SoFi also allows customers to purchase cryptocurrencies directly through the account or transfer their money to another platform.
"Too much money in the digital asset ecosystem is sitting idle, leaving massive potential earnings on the table for millions of people," SoFi CEO Anthony Noto told Reuters.
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The launch places SoFi in a market that has traditionally been served by non-bank cryptocurrency companies. Investors have often used interest-bearing stablecoins to earn returns on money kept ready for digital asset purchases.
That approach faces new restrictions following the passage of the GENIUS Act, which bars stablecoin issuers from paying interest. The change creates an opportunity for banks to offer regulated products that allow customers to earn returns on funds intended for crypto trading.
"The primary opportunity is with people who already participate in crypto and want that money to keep working and ready to move," Noto said.
Traditional financial institutions are increasingly exploring digital asset products. Banks argue that regulated, bank-issued options can provide stronger oversight than stablecoins offered by non-bank companies.
"Over the next year or so, you're going to see an inflection point. It is a big effort to move traditional finance on chain, but I think the economic drivers are just so powerful that it's inevitable," said Sam MacPherson, CEO of digital asset finance firm Spark.
In September, a group of 21 financial institutions, including Goldman Sachs, Bank of America, Citi and Deutsche Bank, announced plans to establish a company to issue a dollar-pegged cryptocurrency in the first half of 2027.