Figure Markets Unveils YLDS: The First Yield-Bearing Stablecoin Registered with the SEC
In a groundbreaking move for the digital asset landscape, Figure Markets has introduced YLDS, a pioneering yield-bearing stablecoin that stands as the first of its kind to be registered under a public security offering with the U.S. Securities and Exchange Commission (SEC). The announcement was made on Thursday, marking a significant milestone for both the company and the broader cryptocurrency ecosystem.
YLDS, issued through Figure Certificate Corporation, is built on the Provenance Blockchain. This innovative stablecoin is designed to accrue interest daily, with interest payments being disbursed monthly in either U.S. dollars or YLDS tokens. It is supported by the same securities that back prime money market funds, delivering a competitive return to holders at an annual rate equivalent to the Secured Overnight Financing Rate (SOFR) minus 50 basis points.
One of the key features of YLDS is its flexibility; the token can be seamlessly transferred peer-to-peer and exchanged for dollars or other stablecoins at any time, with fiat off-ramps accessible during U.S. banking hours. As the stablecoin market has expanded to a staggering $200 billion asset class, the demand for stablecoins for payments and cross-border transactions has surged. However, leading stablecoins like USDT and USDC typically do not provide holders with the yield generated from reserve assets, primarily U.S. Treasuries.
This gap in the market has paved the way for tokenized versions of money-market funds and innovative investment strategies, such as BlackRock’s BUIDL, Franklin Templeton’s BENJI, and Ethena’s USDE. These alternatives are increasingly being utilized as collateral or to effectively manage on-chain cash while securing a yield.
Figure Markets operates as the digital asset division of Figure Technologies, a firm co-founded by Mike Cagney, who previously served as the CEO of SoFi. The company has emerged as a leader in blockchain-based real-world asset (RWA) tokenization, with a remarkable track record of processing over $41 billion in transactions and originating $11 billion in home equity lines of credit via the Provenance Blockchain. In October 2023, Figure took a significant step by filing with the SEC to launch its yield-bearing stablecoin offering.
According to Mike Cagney, CEO of Figure Markets, YLDS is poised to attract significant interest, especially from developers eager to incorporate stable, yield-bearing digital assets into decentralized finance (DeFi) applications and payment solutions. He stated, “We see tremendous applications for YLDS. Exchange collateral, cross-border remittances, and payment rails are immediate opportunities, but this is just the beginning of a larger shift of traditional finance to blockchain.”
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