SoFi targets idle crypto cash with interest-bearing tokenised deposit

SoFi is targeting idle crypto cash with an interest-bearing tokenised deposit, according to a report by The Economic Times.

The product is aimed at customers who hold cryptocurrency but leave it unproductive, offering a yield-bearing tokenised claim rather than a plain deposit account. The source did not disclose the interest rate offered, the underlying assets backing the token, the jurisdictions in which it will be available, or a launch date.

Tokenised deposits have drawn growing attention from banks and fintechs as a way to represent customer balances on a blockchain while keeping them inside the regulated banking perimeter, in contrast with stablecoins issued by non-bank firms. Regulators in several markets are still weighing how such instruments should be supervised and whether they count as deposits, securities or something new.

For international readers, the move is a signal that mainstream financial firms see tokenisation as a customer-acquisition tool rather than a back-office experiment. Whether the model travels beyond the US will depend on how local supervisors treat tokenised claims and the reserves behind them.

SoFi's plans were reported by The Economic Times. Token Times was unable to verify independently the terms of the product or the company's regulatory arrangements for it.