SoFi has launched SoFi Earn offering 4.4% APY and is FDIC insured. The set up seems to be as follows:
- Users use USD to purchase SOFIE with each SOFIE representing 1USD
- SOFIE can then be used to purchase other cryptocurrencies (including SOFID another stable coin)
- SOFIE earns interest and is FDIC insured
I don’t understand the point of this product at all. Why add an extra layer of SOFIE when USD already exists and SOFI already has a stable coined called SOFID? I’m not sure why SoFi is saying that a tokenized deposit is FDIC with such certainty either. Is the underlying deposit FDIC insured or SOFIE itself? Is there a layer of pass through going on as well that can complicate matters? Given there are other basic savings rates that are offering higher rates than 4.4% I fail to understand this product at all.
