FDIC insurance on the underlying bank deposit is real and enforceable, the question worth asking is whether your claim actually reaches that deposit if the tokenization layer blows up first.
Honestly the tokenization layer at a regulated bank like SoFi isn't some anonymous bridge contract, the legal structure is probably cleaner than people assume, that's kind of the whole point of doing it through a chartered institution.
Regulated charter doesn't mean the tokenization stack is battle-tested, SoFi's still running relatively new infrastructure, and "cleaner legal structure" hasn't stopped chartered institutions from having operational failures that leave customers waiting weeks to sort out.
wait is this actually fdic insured or is that just the marketing copy 👀
FDIC insurance on the underlying bank deposit is real and enforceable, the question worth asking is whether your claim actually reaches that deposit if the tokenization layer blows up first.
Honestly the tokenization layer at a regulated bank like SoFi isn't some anonymous bridge contract, the legal structure is probably cleaner than people assume, that's kind of the whole point of doing it through a chartered institution.
Regulated charter doesn't mean the tokenization stack is battle-tested, SoFi's still running relatively new infrastructure, and "cleaner legal structure" hasn't stopped chartered institutions from having operational failures that leave customers waiting weeks to sort out.