SoFi launches tokenised deposits

SoFi has launched a new product called SoFi Earn (SOFIE), marking the first time a national bank has issued a tokenized deposit for everyday consumers. While the term 'tokenized' sounds like crypto, for a retailer or service provider, this is actually about the evolution of digital cash. This technology allows SoFi to move money and settle transactions almost instantly, regardless of traditional banking hours or weekends. For businesses that offer SoFi financing or interact with their banking ecosystem, this is a signal that the 'wait time' for funds is shrinking. Tokenized deposits live on a blockchain, meaning the ledger updates in real-time. This reduces the risk of failed payments and could eventually lower the costs associated with traditional credit card rails or ACH transfers. As more consumers adopt these digital-native accounts, they will expect their purchasing power to be available immediately. This launch sets a precedent for how consumer banks will manage liquidity and rewards in the future. It moves the industry closer to a world where a customer applies for financing, receives funds, and pays the merchant in a single, seamless digital loop without the typical 2-3 day settlement lag.

Source: Finextra — Lending

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