SoFi Earn Could Help Banks Compete With Stablecoins, Truth Ventures CEO Says

Interest-bearing tokenized deposits could give banks another way to compete with stablecoin providers, but payment use also depends on costs, transfer reliability and spending options, Truth Ventures founder and CEO Varun Datta said. “You need lower costs, reliable transfers and somewhere practical to spend the funds,” Datta said. He argued that yield, deposit protections and existing customer relationships could also help banks compete. SoFi announced SoFi Earn (SOFIE) on Oct. 22. Each unit corresponds to a $1 deposit at SoFi Bank. SOFIE’s annual percentage yield was 4.40% as of Oct. 20, and the rate is variable.