🌎 Figure Markets Launches SEC-Registered Stablecoin YLDS

Figure Markets Launches YLDS, a Yield-Bearing Stablecoin Registered with the SEC

Digital asset marketplace Figure Markets has launched YLDS, a groundbreaking stablecoin that is the first to be registered as a public security with the U.S. Securities and Exchange Commission (SEC). This innovative token operates on the Provenance Blockchain and offers holders an annual return at the Secured Overnight Financing Rate minus 50 basis points.

YLDS: A Yield-Bearing Stablecoin

YLDS, issued through Figure Certificate Corporation, accrues interest daily and distributes payments monthly in either U.S. dollars or YLDS tokens. This stablecoin is backed by securities similar to those held in prime money market funds, providing an additional layer of security for investors. The token also supports peer-to-peer transfers and can be exchanged for U.S. dollars or other stablecoins at any time, with fiat off-ramps available during U.S. banking hours.

The Rise of Stablecoins

Stablecoins have grown into a $200 billion asset class, widely used for payments and cross-border transactions. However, leading stablecoins such as USDT and USDC do not distribute yield from reserve assets, primarily U.S. Treasuries. This has led to the rise of tokenized money-market funds and investment products like BlackRock’s BUIDL, Franklin Templeton’s BENJI, and Ethena’s USDE.

Adoption and Use Cases

Figure Markets expects YLDS to gain adoption among developers integrating blockchain-based assets into decentralized finance and payment applications. According to Mike Cagney, co-founder of Figure Technologies, “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.”