SoFi Launches Tokenized Deposit That Earns 4.4% and Converts to a Stablecoin - Yahoo Finance

SoFi has introduced a tokenized deposit product that offers a 4.4% yield and can be converted into a stablecoin, according to Yahoo Finance. The offering sits at the intersection of two trends shaping digital finance: tokenized cash balances, which represent deposit claims on a blockchain, and stablecoins, which are designed to hold a steady value and are widely used for on-chain transfers.

The significance lies in the combination of yield and convertibility. A tokenized deposit that earns interest while remaining convertible into a stablecoin gives holders a way to move between an interest-bearing balance and a transferable digital asset. For the broader market, this blurs the line between traditional deposit accounts and crypto-native instruments, and it may pressure other institutions to offer comparable features. It also raises questions regulators have been examining closely, including how such products are classified and what protections apply.

What to watch: the specific terms of the 4.4% rate, including whether it is promotional or variable; the mechanics and any fees involved in converting to a stablecoin; and how regulators and peers respond as tokenized deposits and stablecoins increasingly compete for the same balances.