SoFi’s tokenized deposits put banks in competition with stablecoins, Truth Ventures CEO says

The product expands SoFi's digital asset offerings as the company builds out its regulated banking and blockchain infrastructure. SoFi Technologies’ move to offer interest-bearing tokenized deposits could signal growing competition between banks and stablecoin providers, according to Varun Datta, founder and CEO of Truth Ventures. The product, called SoFi Earn (SOFIE), lets consumers earn 4.40% APY on digital dollars while keeping the funds available for crypto purchases and blockchain-based transfers. The deposits carry FDIC insurance up to applicable limits and can be converted into SoFiUSD at a 1:1 ratio. Datta said banks can compete with stablecoin issuers through interest, deposit protection and existing customer relationships, although consumers must understand which protections apply to each product.

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