Measurable parameters of the electron indicate that its background should be described by the Kerr–Newman (KN) solution. The spin/mass ratio of the electron is extreme large and the black hole (BH) horizons disappear, opening a topological defect of space–time — the Kerr singular ring of Compton size, which may be interpreted as a closed fundamental string to low-energy string theory. The singular and two-sheeted structure of the corresponding Kerr space has to be regularized, and we consider the old problem of regularizing the source of the KN solution. As a development of the earlier Keres–Israel–Hamity–López model, we describe the model of smooth and regular source forming a gravitating and relativistically rotating soliton based on the chiral field model and the Higgs mechanism of broken symmetry. The model reveals some new remarkable properties: (1) the soliton forms a relativistically rotating bubble of Compton radius, which is filled by the oscillating Higgs field in a pseudo-vacuum state; (2) the boundary of the bubble forms a domain wall which interpolates between the internal flat background and the external exact KN solution; (3) the phase transition is provided by a system of chiral fields; (4) the vector potential of the external KN solution forms a closed Wilson loop which is quantized, giving rise to a quantized spin of the soliton and (5) the soliton is bordered by a closed string, which is a part of the general complex stringy structure.