SoFi targets idle crypto cash with interest-bearing tokenized deposit
SOFI•SoFi Technologies launched a tokenized deposit product for cash set aside for crypto purchases, offering 4.2% annual interest in a SoFi Earn account and FDIC insurance on eligible deposits up to $250,000 per depositor.
1. Interest on crypto cash
SoFi Technologies launched a tokenized deposit product that lets customers earn interest on cash set aside for crypto purchases. Cash in a SoFi Earn account will generate 4.2% annual interest and carry FDIC insurance, which covers eligible deposits up to $250,000 per depositor if a bank fails.
2. Crypto access and competition
SoFi Earn will also let users buy crypto directly or transfer funds to another platform. The product enters a space where funds earmarked for crypto trading have often been held in interest-bearing stablecoins. The article says the GENIUS Act barred stablecoin issuers from paying interest, creating an opening for banks to offer regulated, interest-bearing alternatives.
3. Banks explore digital assets
SoFi CEO Anthony Noto said the opportunity is with people already participating in crypto who want their money to keep working while ready to move. In September, 21 financial institutions, including Goldman Sachs, Bank of America and Citi, said they planned to create a company to issue a dollar-pegged cryptocurrency in the first half of 2027.
