Figure Markets has launched YLDS, the first yield-bearing stablecoin registered as a public security with the SEC.
The emergence of YLDS and its features
The YLDS stablecoin, issued through Figure Certificate Corporation, operates on the Provenance Blockchain and pays an annual return at the Secured Overnight Financing Rate minus 50 basis points. Interest accrues daily, with monthly payments in U.S. dollars or YLDS tokens. Backed by securities similar to those held in prime money market funds, YLDS supports peer-to-peer transfers and can be exchanged for U.S. dollars or other stablecoins at any time.
Market and applications of stablecoins
Stablecoins have grown into a $200 billion asset class, extensively used for payments and cross-border transactions. Leading stablecoins like 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 such as BlackRock’s BUIDL, Franklin Templeton’s BENJI, and Ethena’s USDE.
Transactions and prospects of Figure Markets
Figure Markets is the digital asset division of Figure Technologies, co-founded by former SoFi CEO Mike Cagney. The firm has processed over $41 billion in blockchain-based transactions and originated $11 billion in home equity lines of credit. In October 2023, the company filed with the SEC to launch its yield-bearing stablecoin. The company anticipates YLDS adoption among developers integrating blockchain-based assets into decentralized finance and payment applications. "We see tremendous applications for YLDS," noted Cagney.
Figure Markets' YLDS stablecoin opens new possibilities for integrating traditional finance into blockchain technologies.
