The U.S. Securities and Exchange Commission (SEC) has approved YLDS, the first interest-bearing stablecoin registered as a security. Developed by Figure Markets, YLDS offers users a stablecoin that accrues daily interest while operating within a fully regulated framework.
What Makes YLDS Different
Unlike popular stablecoins such as USDT and USDC, which operate in regulatory uncertainty, YLDS is officially registered as a security with the SEC. This classification aligns it with stocks and bonds, ensuring compliance with U.S. financial regulations. Features of YLDS include daily interest accrual at SOFR minus 0.50%, peer-to-peer transfers without intermediaries, 24/7 trading and redemption in USD and other stablecoins, and self-custody of tokens.
A Major Shift in Stablecoin Regulation
Figure Markets CEO Mike Cagney called YLDS a 'transformative play' in the financial sector, suggesting it could reshape cross-border payments and traditional payment networks, accelerating the integration of TradFi and blockchain. YLDS is part of Figure Markets' broader push into tokenized real-world assets (RWAs), with regulatory approval from the SEC signalling potential changes in stablecoin regulations.
The Future of Regulated Stablecoins
With the SEC’s approval of YLDS, experts anticipate more interest-bearing stablecoins could emerge under similar frameworks. However, regulatory approvals may take six to twelve months for new entrants. Meanwhile, U.S. policymakers are closely monitoring stablecoin growth, which has reached over $225 billion according to DeFiLlama.
The SEC's approval of YLDS marks a significant step in stablecoin regulation, paving the way for interest-bearing stablecoins that may change the landscape of blockchain-based financial products.
